Managers Opportunistic Behavior and Discretionary Accrual: An Evidence of Indonesian Manufacturing Firm

Muhammad Haykal, Erlina, Azhar Maksum, Iskandar Muda

2019

Abstract

This study aims to analyze and re-examine the impact of managers' opportunistic behavior in detecting discretionary accruals. In a variety of literature found managers have a very strong interest in managing accruals. This study examines how managers manage accruals to get direct benefits for managers by relying on the subjectivity and flexibility of accounting standards. Taking samples of Indonesian manufacturing companies from 2006-2016 to companies that issued financial reports continued. The findings prove that managers do the discretionary accrual in the preparation of financial statements. The bonus scheme is found to have a positive effect and the number of shares outstanding has a negative effect on accrual discretion. The audit quality variable was found to have a negative effect on the existence of discretionary accrual this provides input that good audit quality can reduce the discretionary accrual. The results of this study prove that there is a non-linear relationship between discretionary accrual with the income reported in the financial statements, the owner can suppress and have the ability to monitor the operation of the company so that managers find it difficult to do discretionary accrual when referring to the manager's own motives and interests.

Paper Citation

in Harvard Style

Haykal M., Erlina., Maksum A. and Muda I. (2019). Managers Opportunistic Behavior and Discretionary Accrual: An Evidence of Indonesian Manufacturing Firm. In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA, ISBN 978-989-758-582-1, pages 521-531. DOI: 10.5220/0010437700002900

in Bibtex Style

@conference{miicema19,
author={Muhammad Haykal and Erlina and Azhar Maksum and Iskandar Muda},
title={Managers Opportunistic Behavior and Discretionary Accrual: An Evidence of Indonesian Manufacturing Firm},
booktitle={Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,},
year={2019},
pages={521-531},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010437700002900},
isbn={978-989-758-582-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,
TI - Managers Opportunistic Behavior and Discretionary Accrual: An Evidence of Indonesian Manufacturing Firm
SN - 978-989-758-582-1
AU - Haykal M.
AU - Erlina.
AU - Maksum A.
AU - Muda I.
PY - 2019
SP - 521
EP - 531
DO - 10.5220/0010437700002900