Company Financial Ratios, Company Ownership and Company Conditions on Earnings Management

Indra Arifin Djashan, Ade Lawira

2018

Abstract

Recently, high-level scandals and financial crises that have occurred in several countries have brought issues of corporate governance to the forefront of developing countries, emerging markets and transitional economies. This scandal shook the integrity of accounting information and resulted in a decline in investor confidence. This has made the company need to achieve significant progress to carry out corporate governance to restore investor confidence in the quality of financial reporting. To achieve this, this paper proposes a conceptual framework to investigate the relationship between financial ratios (profitability, leverage and operating cash flow), ownership (Institutional ownership and managerial ownership), and company condition (board size, firm size, sales growth) to earnings management among manufacturing companies listed on the Indonesia Stock Exchange (IDX). Evidence from previous research shows that the company's financial ratios (profitability) that have large profits and meet targets has very little chance of manipulating earnings.

Paper Citation

in Harvard Style

Djashan I. and Lawira A. (2018). Company Financial Ratios, Company Ownership and Company Conditions on Earnings Management.In Proceedings of the 7th International Conference on Entrepreneurship and Business Management - ICEBM Untar, ISBN 978-989-758-363-6, pages 44-48. DOI: 10.5220/0008487900440048

in Bibtex Style

@conference{icebm untar18,
author={Indra Arifin Djashan and Ade Lawira},
title={Company Financial Ratios, Company Ownership and Company Conditions on Earnings Management},
booktitle={Proceedings of the 7th International Conference on Entrepreneurship and Business Management - ICEBM Untar,},
year={2018},
pages={44-48},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008487900440048},
isbn={978-989-758-363-6},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Entrepreneurship and Business Management - ICEBM Untar,
TI - Company Financial Ratios, Company Ownership and Company Conditions on Earnings Management
SN - 978-989-758-363-6
AU - Djashan I.
AU - Lawira A.
PY - 2018
SP - 44
EP - 48
DO - 10.5220/0008487900440048