FAIRNESS AND RECIPROCITY IN EARNINGS MANAGEMENT

LAKO, ANDREAS and HARSONO, RICKY DWI BUDI (2009) FAIRNESS AND RECIPROCITY IN EARNINGS MANAGEMENT. Fairness and Reciprocity.

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Abstract

This paper test the hint that executives’ decision to manage earnings is in a fairness and reciprocal context. A structural equation model with earnings management, shares’ market price, executives’ compensation, and three thresholds of fairness latent variables was tested empirically using the partial least squares (PLS) technique by implementing Smart PLS 2.0 (beta). Using the unique BusinessWeek’s core earnings data set, the results show that all of the hypotheses were supported. The structural equation model turned out to provide weak to moderate R2s with latent exogenous variables’ effect size to latent endogenous variables varied from weak to strong.

Item Type: Article
Subjects: > 650 Management
Divisions: Faculty of Economics and Business > Department of Accounting
Depositing User: Mrs Christiana Sundari
Date Deposited: 20 Sep 2019 00:44
Last Modified: 20 Sep 2019 00:44
URI: http://repository.unika.ac.id/id/eprint/19997

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