Pengaruh CEO Financial Expertise dan CEO Tenure terhadap Earnings Management setelah Initial Public Offering
Abstract
This study investigates the impact of Chief Executive Officer (CEO) financial expertise and CEO tenure on earnings management in non-financial companies conducting initial public offering in Indonesia during 2022–2024. The novelty of this study lies in examining three indicators of CEO financial expertise, namely educational background, work experience, and professional certification, with CEO tenure in companies undertaking initial public offering. This study uses a quantitative approach with secondary data. Earnings management is measured using discretionary accruals and analysed using multiple linear regression. The results show that a CEO’s educational background and CEO tenure have a negative and significant effect on earnings management. Meanwhile, work experience and professional certification do not have a significant effect. The study concludes that certain CEO characteristics can reduce earnings management during the initial public offering process. Future research is recommended to include additional governance variables and consider the role of the Chief Financial Officer (CFO) in influencing earnings management.
References
Alhmood, M. A., Shaari, H., & Al-dhamari, R. (2020). CEO characteristics and real earnings management in Jordan. International Journal of Financial Research, 11(4), 255–266. https://doi.org/10.5430/ijfr.v11n4p255
Ali, A., & Zhang, W. (2015). CEO Tenure and Earnings Management. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2014.11.004
Altarawneh, M., Shafie, R., Ishak, R., & Ghaleb, A. B. A. (2022). Chief executive officer characteristics and discretionary accruals in an emerging economy. Cogent Business & Management, 9(1), 1–20. https://doi.org/10.1080/23311975.2021.2024117
Amelia, & Eriandani, R. (2021). CEO characteristics and earnings management: evidence from Indonesia. Journal of Management and Business, 20(2), 141–154. https://doi.org/https://doi.org/10.24123/jmb.v20i2
Atwa, R., Alsmadi, S., Kharabsheh, B., & Haddad, R. (2023). Do CEO Attributes Spur Conservatism ? International Journal of Financial Studies, 11(52), 1–15. https://doi.org/https://doi.org/ 10.3390/ijfs11010052
Bai, G., Yang, Q., & Elyasiani, E. (2022). Managerial Risk-Taking Incentives and Bank Earnings Management: Evidence from FAS 123R. Sustainability (Switzerland), 14(21), 1–21. https://doi.org/10.3390/su142113721
Bamber, L. S., Jiang, J. X., & Wang, I. Y. (2010). What ’ s My Style ? The Influence of Financial Disclosure. 85(4), 1131–1162. https://doi.org/10.2308/accr.2010.85.4.1131
Bergh, D. D. (2001). Executive retention and acquisition outcomes : A test of opposing views on the influence of organizational tenure. Journal of Management, 27(5), 603–622. https://doi.org/https://doi.org/10.1016/S0149-2063(01)00110-6
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
Chen, S., Tzavara, D., Argyropoulou, M., Koufopoulous, D., & Argyropoulou, R. (2024). CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overfonfidence. Studies in Business and Economics, 19(3), 335–347. https://doi.org/10.2478/sbe-2024-0059
Custódio, C., & Metzger, D. (2014). Financial expert CEOs: CEO’s work experience and firm’s financial policies. Journal of Financial Economics, 114(1), 125–154. https://doi.org/10.1016/j.jfineco.2014.06.002
Dechow, P. M., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2–3), 344–401. https://doi.org/10.1016/j.jacceco.2010.09.001
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting Earnings Management. The Accounting Review, 70(2), 193–225. https://doi.org/https://doi.org/10.2308/TAR-9505096112
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2010). The Effects of Executives on Corporate Tax Avoidance. 85(4), 1163–1189. https://doi.org/10.2308/accr.2010.85.4.1163
Elliott, J. A., & Shaw, W. H. (1998). Write-Offs as Accounting Procedures to Manage Perceptions. Journal of Accounting Research, 26, 91–119. https://doi.org/https://doi.org/10.2307/2491182
Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 28–30. https://doi.org/https://doi.org/10.2307/2325486
Feliana, Y. K., & Farandy, A. C. (2021). Tata Kelola, Manajemen Laba, dan Kinerja Perusahaan Setelah IPO: Bukti Dari Indonesia. Jurnal MONEX, 10(1), 113–132. https://ejournal.poltektegal.ac.id/index.php/monex/article/view/2297
Feng, M., Ge, W., Luo, S., & Shevlin, T. (2011). Why do CFOs become involved in material accounting manipulations? Journal of Accounting and Economics, 51(1–2), 21–36. https://doi.org/10.1016/j.jacceco.2010.09.005
Ge, W., Matsumoto, D., & Zhang, J. L. (2011). Do CFOs Have Style? An Empirical Investigation of the Effect of Individual CFOs on Accounting Practices. Contemporary Accounting Research, 28(4), 1141–1179. https://doi.org/10.1111/j.1911-3846.2011.01097.x
Gounopoulos, D., & Pham, H. (2018). Financial Expert CEOs and Earnings Management Around Initial Public Offerings. International Journal of Accounting, 53(2), 102–117. https://doi.org/10.1016/j.intacc.2018.04.002
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (Fifth Edit). McGraw-Hill Irwin. https://crooker.faculty.unlv.edu/econ441/econ_papers/White-Heteroskedasticity-Correction-1980.pdf
Habib, A., Ranasinghe, D., Wu, J. Y., Biswas, P. K., & Ahmad, F. (2022). Real earnings management: A review of the international literature. Accounting and Finance, 62(4), 4279–4344. https://doi.org/10.1111/acfi.12968
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (Seventh Ed). Pearson. https://epdf.pub/queue/multivariate-data-analysis-7th-editiona46ab3c7281e32102907c4d9cc26360890510.html
Halim, H., & Pangestu, S. (2020). Manajemen Laba pada Periode Initial Public Offering dan Dampaknya pada Persistensi Laba. Jurnal Akuntansi, 30(11), 2922–2938. https://doi.org/https://dx.doi.org/10.24843/eja.2020.v30.i11.p16
Haman, J., Lu, W., & Naidu, D. (2024). Earnings management in the post-IPO years and their impact on the long-run stock performance of foreign versus domestic IPO firms. Accounting and Finance, 64(3), 2871–2913. https://doi.org/10.1111/acfi.13239
Hambrick, D. C., & Fukutomi, G. D. S. (1991). The Seasons of A CEO’s Tenure. Academy of Management Review, 16(4), 719–742. https://doi.org/https://doi.org/10.2307/258978
Hariyani, D. S., Rahmawati, N., & Ditasari, R. A. (2025). The Influence of Prudence , CEO Gender and CEO Tenure on Earnings Management : In Audit Committee Moderation. Jurnal Ilmu Keuangan Dan Perbankan (JIKA), 14(2), 191–200. https://doi.org/https://doi.org/10.34010/jika.v14i2.16421
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. https://doi.org/https://doi.org/10.2308/acch.1999.13.4.365
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
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X
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
Kristiawan, N. B. (2025). The Influence of CEO Characteristics Towards Earnings Quality In Indonesian Manufacturing Companies. International Research Journal of Economics and Management Studies, 4(1), 152–158. https://doi.org/10.56472/25835238/IRJEMS-V4I1P114
Loan Nguyen, T. K., Dong, P. X., & Phuong, H. T. L. (2025). CEO’s financial and accounting expertise on earning quality: The moderating role of audit quality. WSB Journal of Business and Finance, 59(1), 81–92. https://doi.org/10.2478/wsbjbf-2025-0007
Musa, A., Abdul Latif, R., & Abdul Majid, J. (2023). CEO attributes, board independence, and real earnings management: Evidence from Nigeria. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2194464
Noviani, A., & Sukma, A. M. (2026). Kronologi Kasus Manipulasi IPO Multi Makmur Lemindo (PIPA) hingga Penetapan 3 Tersangka Baru. Market.Bisnis.Com. https://market.bisnis.com/read/20260204/192/1949882/kronologi-kasus-manipulasi-ipo-multi-makmur-lemindo-pipa-hingga-penetapan-3-tersangka-baru
Nurrofiah, N., Suryanto, & Dai, R. M. (2024). Analisis Manajemen Laba dengan Modified Jones Model Dalam Initial Public Offering (IPO) Perusahaan Manufaktur di Bursa Efek Indonesia. Journal of Business and Economics Research (JBE), 5(2), 138–147. https://doi.org/10.47065/jbe.v5i2.5291
Oradi, J., Asiaei, K., & Rezaee, Z. (2020). CEO financial background and internal control weaknesses. Corporate Governance: An International Review, 28(2), 119–140. https://doi.org/10.1111/corg.12305
Pagano, M., Panetta, F., & Zingales, L. (1998). Why Do Companies Go Public? An Empirical Analysis. The Journal of Finance, 53(1), 27–64. https://doi.org/https://doi.org/10.1111/0022-1082.25448
Pratomo, G. Y. (2026). Deretan Fakta Kasus Emiten PIPA: Rekayasa IPO hingga Penggeledahan Sekuritas. Liputan 6. https://www.liputan6.com/saham/read/6272596/deretan-fakta-kasus-emiten-pipa-rekayasa-ipo-hingga-penggeledahan-sekuritas
Putra, A. A. (2021). The Effect of CEO Characteristics on Pre-Earnings. 18(2). https://doi.org/10.21002/jaki.2021.07
Putri, E. M., & Syaipudin, U. (2025). Pengaruh Pergantian CEO terhadap Manajemen Laba dengan Komisaris Independen sebagai Variabel Moderasi. Jurnal Ekonomi, Akuntansi, Dan Perpajakan Konomi, Akuntansi, Dan Perpajakan, 2(3), 01–14. https://doi.org/https://doi.org/10.61132/jeap.v2i3.1044
Qawasmeh, S. Y., & Azzam, M. J. (2020). Ceo characteristics and earnings management. Accounting, 6(7), 1403–1410. https://doi.org/10.5267/j.ac.2020.8.009
Rezaee, Z., Asiaei, K., & Delooie, T. S. (2021). Are CEO experience and financial expertise associated with financial restatements? Revista de Contabilidad-Spanish Accounting Review, 24(2), 270–281. https://doi.org/10.6018/RCSAR.379991
Schipper, K. (1989). Commentary on Earnings Management. Accounting Horizons, 3(4), 91–102. https://doi.org/https://doi.org/10.2308/AH-4816073
Scott, W. R. (2015). Financial accounting. In Seventh Edition (Ed.), Financial Accounting. https://doi.org/10.4324/9780203784655
Shakir, R. (2009). Examining the Effect of Leadership Structure and CEO Tenure on Malaysian Property Firm Performance. Journal of Real Estate Literature, 17(1), 45–62. https://doi.org/10.1080/10835547.2009.12090248
Shiyammurti, N. R., & Lestari, E. C. (2024). The Influence Of Financial Distress, Return On Assets (ROA) And Company Size On Profit Management Study On Pharmaceutical Companies Listed On The Indonesian Stock Exchange (BEI) In 2016-2022. Jurnal Multidisiplin Sahombu, 4(01), 143–152. https://doi.org/10.58471/ jms.v4i01
Sonda, M., & Sutrisno, P. (2022). Board of Directors, CEO Experience, CEO Tenure in Three Real Earnings Management Measurement Approaches. Ultima Accounting: Jurnal Ilmu Akuntansi, 14(2), 218–233. https://doi.org/https://doi.org/10.31937/akuntansi.v14i2.2710
Strong, J. S., & Meyer, J. R. (1987). Asset Writedowns : Managerial Incentives and Security Returns. The Journal of Finance, 42(3), 643–661. https://doi.org/https://doi.org/10.2307/2328376
Teoh, S. H., Welch, I., & Wong, T. J. (1998). Earnings Management and the Long-Run Market Performance of Initial Public Offerings. Journal of Finance, 53(6), 1935–1974. https://doi.org/10.1111/0022-1082.00079
Wardani, K. R., Herlina, I., Shandi, D., & B, M. R. (2020). Manajemen Laba: Profitabilitas, Leverage, dan Ukuran Perusahaan Sektor Pertambangan. Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 4(3), 1853–1869. https://doi.org/https://doi.org/10.31955/mea.v4i3.366
White, H. (1980). A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity. ECONOMETRICA: Journal of Econometric Society, 48(4), 817–838. https://doi.org/https://doi.org/10.2307/1912934
Wijanarko, A., Cahyono, A. N., Susilawati, M., Santoso, F., & Pardede, M. (2024). The Influence of CEO Tenure on Earnings Management. Innovative: Journal Of Social Science Research, 4(3), 494–503. https://doi.org/https://doi.org/10.31004/innovative.v4i3.10479
Yani, R., Yusrawati, & Abrar. (2024). Pengaruh CEO Tenur, Rapat Dewan Direksi , Earning Manajemen Laba (Studi Empiris pada Perusahaan Transportasi dan Logistik yang Terdaftar di Bursa Efek Indonesia Periode 2019-2021). Journal of Islamic Finance and Accounting Research, 3(1), 61–76. https://doi.org/https://doi.org/10.25299/jafar.2024.14264
.png)
.png)
