The Impact of Ownership Characteristics and Gender on Earnings Management: Indonesian Companies

Ari Kuncara Widagdo, Rahmawati, Djuminah, Siti Arifah, Francisca Sestri Goestjahjanti and Kiswanto ()
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Ari Kuncara Widagdo: Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia
Rahmawati: Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia
Djuminah: Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia
Siti Arifah: Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia
Francisca Sestri Goestjahjanti: Faculty of Economics and Business, University of Insan Pembangunan Indonesia, Tangerang 15810, Indonesia
Kiswanto: Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia

JRFM, 2022, vol. 16, issue 1, 1-15

Abstract: Earnings management is a behavior performed by management to show good performance to principals. This effort creates information bias in the study of agency theory, which in turn increases information asymmetry. In Indonesia, the average company has a family ownership structure. Therefore, this study aims to examine the effect of family ownership characteristics and gender on earnings management. This study includes gender diversity in the board of commissioners and board of directors. This research uses the non-financial companies’ data in Indonesian Capital Market. Furthermore, the data were analyzed using multiple regression based on ordinary least squares. Research results show that the proportion of females in both board of commissioners and board of directors, as well as company size contribute significantly to earnings management, whereas, family ownership, ROA, and leverage do not have a significant impact. This research provides a practical contribution to the study of the composition of the board of commissioners and directors regarding earnings management actions for owners, investors and other stakeholders.

Keywords: earnings management; family ownership; gender (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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