Good corporate governance and earnings management in Indonesian initial public offerings
| Autor: | Tatang Ary Gumanti, Ari Sita Nastiti, Ayu Retsi Lestari |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Finance
050208 finance Good corporate governance business.industry Corporate governance 05 social sciences Accounting 050201 accounting General Business Management and Accounting language.human_language Indonesian Earnings management 0502 economics and business language business Initial public offering |
| Zdroj: | Corporate Ownership and Control. 13:558-565 |
| ISSN: | 1810-3057 1727-9232 |
| DOI: | 10.22495/cocv13i4c4p5 |
| Popis: | This study investigates the relationship between corporate governance mechanisms and earnings management (as measured by discretionary current accruals) for Indonesian IPO firms. Previous studies have mainly focused on an examination of the effect of corporate governance on the earnings management of publicly traded firms, whilst this study examines newly listed firms. It employs a modified Jones model to measure earnings management as developed by Tykvova (2006). The hypothesis predicts that Indonesian IPO firms with good corporate governance will engage in less earnings management in the periods prior to the IPO year. The sample consists of 75 IPOs and the results show that the proportion of board of commissioners, public ownership, institutional ownership and managerial ownership constrain the extent of earnings management of IPO firms. This study contributes to the literature in showing that corporate governance mechanism is an important determinant in earnings management practices for Indonesian IPO firms. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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