Effect of Related Party Transaction and Political Connection on Real Earnings Management: Study on Manufacturing Companies Listed in Indonesia Stock Exchange

Agustin Palupi and Lusia Tania Aurelia

A chapter in Quantitative Analysis of Social and Financial Market Development, 2022, vol. 30, pp 1-15 from Emerald Group Publishing Limited

Abstract: This study aims to examine the influence of related party transactions (RPTs), political connection (POLCON), board of directors (BOD), institutional ownership (IO), information asymmetry, audit quality (AQ), and leverage (LEV) on real earnings management (REM). The company used in this research is manufacturing companies listed on the Indonesian Stock Exchange from 2017 to 2019. The number of research samples is 192 firm years data. This study shows that RPTs, POLCON, IA, and LEV affect REM. In contrast, the BOD, IO, and AQ do not affect REM.

Keywords: Related party transaction; political connection; board of director; institutional ownership; information asymmetry; audit quality; leverage; real earnings management (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-038620220000030001

DOI: 10.1108/S1571-038620220000030001

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