Hubungan Financial Expert CEO dengan Earnings Management saat Perusahaan Melakukan Aksi Korporasi Initial Public Offerings: Studi Kasus Perusahaan Nonkeuangan yang IPO Tahun 2021-2023
Abstract
This study examines the effect of CEO financial expertise on earnings management in non-financial firms conducting Initial Public Offerings (IPOs) in Indonesia between 2021 and 2023. CEO financial expertise is measured based on educational background and professional experience in the financial sector. Using multiple regression analysis on a sample of 141 firms, this study analyzes the relationship between CEO expertise and both accrual-based earnings management (AEM) and real earnings management (REM).The results show that AEM and REM decrease after the IPO, indicating that earnings management practices are more aggressive during the IPO period. However, CEO financial expertise has no significant effect on either AEM or REM. These findings suggest that financial knowledge alone is insufficient to curb opportunistic reporting behavior in the IPO context. Future research is recommended to explore corporate governance mechanisms as moderating factors in understanding the role of CEO expertise.
References
Adamu, Danlami, Ahmed., Ibrahim, Ali. (2022). Effect of Earnings management on the Firm Value of the Listed Nigerian Oil and Gas Companies. Audit and Accounting Review, 2(1):92-114.
Baker, T. A., Lopez, T. J., Reitenga, A. L., & Ruch, G. W. (2019). The influence of CEO and CFO power on accruals and real earnings management. Review of Quantitative Finance and Accounting, 52(1), 325–345. https://doi.org/10.1007/s11156-018-0711-z
Bouaziz, D., Salhi, B., & Jarboui, A. (2020). CEO characteristics and earnings management: empirical evidence from France. Journal of Financial Reporting and Accounting, 18(1), 77–110. https://doi.org/10.1108/JFRA-01-2019-0008
Daniele, Giordino. (2023). Earnings management or Earnings Manipulation?. Advances in finance, accounting, and economics book series, 84-104. doi: 10.4018/979-8-3693-1190-5.ch005
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193-225
Demers, E., & Wang, C. (2010). The impact of CEO background on financial reporting quality. Journal of Accounting Research, 48(3), 517–553
Fristy, Dwi, Andita, Salama., Murdiyati, Dewi. (2022). Effect of effectiveness audit committee, internal audit and quality of audit on profit management. Jurnal Ipteks Terapan : Research of Applied Science And EDUcation, 16(1):84-89.
Gounopoulos, D., & Pham, H. (2018). Financial expert CEOs and earnings management around initial public offerings. International Journal of Accounting.
Hamish, D., Anderson., Jing, Liao., S, Yue. (2021). Financial expert CEOs, political intervention, and corporate investment decisions: Evidence From The Anti-Corruption Campaign.
Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365-383.
Hu, N., Huang, R., Li, X., & Liu, L. (2017). The impact of CEOs’ accounting backgrounds on earnings management and conservatism. Journal of Centrum Cathedra, 10(1), 4–24. https://doi.org/10.1108/jcc-10-2016-0016
Istikhoroh, S., Jannah, M., Sukamdani, Y., & Suhardiyah, M. (2022). Peran Underwriter sebagai Komunikator Pemasaran Saham Perdana di Bursa Efek Indonesia. Jurnal Studi Komunikasi, 6 (1), 315-330
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Jiang, F., Zhu, B., & Huang, J. (2013). CEO’s financial experience and earnings management. Journal of Multinational Financial Management, 23(3), 134–145. https://doi.org/10.1016/j.mulfin.2013.03.005
Kalgo, S. H., Nahar, H. S., & Noordin, B. A. A. (2022). The impact of initial public offering (IPO) attributes, firm-level characteristics and ownership on Malaysian IPO firms’ earnings management. Asian Academy of Management Journal of Accounting and Finance, 18(1), 235-262.
Khan, S., Kamal, Y., Abbas, M., & Hussain, S. (2022). Board of directors and earnings manipulation: evidence from regulatory change. Future Business Journal
Li, C., Tseng, Y., & Chen, T. K. (2016). Top management team expertise and corporate real earnings management activities. Advances in Accounting, 34, 117–132. https://doi.org/10.1016/j.adiac.2016.07.007
Meiliana dan, R., & Misniasih, E. (2018). Titik Kritis Manajemen Laba Pada Perubahan Tahap Life Cycle Perusahaan Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Riset Terapan Akuntansi, 2(1), 59–69.
Natonis, Sari Angriany. (2019). CEO Behavioral Influences Firm Performance: A Study Literature. Owner (Riset & Jurnal Akuntansi), 3 (2), 250
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2021). Human Resource Management: Gaining a Competitive Advantage. McGraw-Hill EDUcation
Oradi, Javad and Asiaei, Kaveh and Rezaee, Zabihollah. (2020). CEO financial background and internal control weaknesses. Corporate Governance: An International Review, 28 (2). pp. 119-140. ISSN 0964-8410
Petra, M., Sihaloho, A. B., Berliana, M., Gaol, L., & Harefa, M. S. (2024). Pengaruh manajemen laba sebelum initial public offering (IPO) terhadap kinerja keuangan perusahaan. AKADEMIK: Jurnal Mahasiswa Ekonomi & Bisnis, 4(1), 294-303
Rajeevan, S., & Ajward, R. (2020). Board characteristics and earnings management in Sri Lanka. Journal of Asian Business and Economic Studies, 27(1), 2–18. https://doi.org/10.1108/JABES-03-2019-0027
Rizka, Rulfah. (2017). Pengaruh Informasi Keuangan dan Non Keuangan Terhadap Initial Return pada Perusahaan yang Melakukan Penawaran Umum Perdana. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi (JIME), 2 (3), 59-72
Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate Finance (10th ed.). McGraw-Hill EDUcation.
Rustom M. Irani and David Oesch, (2016), Analyst Coverage and Real Earnings management: Quasi-Experimental Evidence, Journal of Financial and Quantitative Analysis, 51, (2), 589-627
Scott, W. R. (2015). Financial accounting (7th ed.). Pearson.
Susanto, P, dkk. (2024). Konsep Penelitian Kuantitatif: Populasi, Sampel, dan Analisis Data. Jurnal Ilmu Multidisiplin.
Tarus, D. K., & Korir, F. J. (2023). Does CEO narcissism matter? An examination of the relationship between board structure and earnings management in Kenya. PSU Research Review. https://doi.org/10.1108/PRR-07-2022-0089
U.S. Securities and Exchange Commission. (2002). Sarbanes-Oxley Act of 2002, Section 407
Undang-Undang Republik Indonesia No. 20 Tahun 2003 tentang Sistem Pendidikan Nasional.
.png)
.png)
