Firm Value and Real Earnings Management: Moderating Role of Board Independence and CEO Duality

Authors

DOI:

https://doi.org/10.35143/jakb.v15i1.5332

Abstract

This research aims to examine the moderating role of board independence and CEO duality on the effect of real earnings management (hereafter REM) on firm value. This research uses 867 manufacturing firm-year listed on the Indonesian Stock Exchange 2012-2019 as a research sample. Board independence includes a proportion of independent commissioners in the board, the interlock of independent commissioners. CEO duality refers to the affiliation between the CEO and the board of commissioners. REM is measured by over sales, overproduction, and discretionary expenses cutting activities. Firm value is measured by Tobin's Q. REM has a positive effect on firm value when the proportion of independent commissioner, interlock of the independent commissioner, committee overlap of the independent commissioner are higher. On the other hand, REM has a negative effect on firm value when there is a CEO duality.

Downloads

Published

2022-05-31

Issue

Vol. 15 No. 1 (2022): Jurnal Akuntansi Keuangan dan Bisnis

Section

Artikel

License

Copyright (c) 2022 Adhitya Agri Putra, Meliza Putriyanti Zifi

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

    1. Authors hold the copyright in any process, procedure, or article described in the work and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

    2. Authors retain publishing rights to re-use all or portion of the work in different work but can not granting third-party requests for reprinting and republishing the work.

    3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) as it can lead to productive exchanges, as well as earlier and greater citation of published work.