The Effect of International Financial Reporting Standars on the Real Earnings Management and Internal Control Structure as a Moderating Variable

HASTUTI, THERESIA DWI The Effect of International Financial Reporting Standars on the Real Earnings Management and Internal Control Structure as a Moderating Variable. International Journal of Economics and Financial Issues, 6 (4). ISSN 2146-4138

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Abstract

Earnings management has become a widely known phenomenon towards managing reported earning in order to fulfill targets. Scott (1997) defines earnings management as a management choice upon accounting policy, or a real activity that affects earnings as such that multiple objectives of the specific earnings reporting can be obtained. The perspective of financial statement contends that a manager uses earnings management to match financial analyst’s forecast with the objective of avoiding perception and negative reaction, which in turn brings impact on stock price. This study aimed to examine the effect of International Financial Reporting Standards (IFRS)-based accounting standard on the real earnings management (REM) moderated by internal control structure. Samples for the study were manufacture companies listed in the Indonesian Stock Exchange 2010-2014. The study found that adoption of the IFRS-based accounting standard had a positive effect on the REM and good corporate governance proxied by internal control structure weaken the positive effect of the IFRS-based accounting standard adoption on the REM.

Item Type:	Article
Subjects:	600 Technology (Applied sciences) > 650 Management > 657 Accounting > Financial reports
Divisions:	Faculty of Economics and Business > Department of Accounting
Depositing User:	Mrs Rikarda Ratih
Date Deposited:	13 Sep 2020 05:25
Last Modified:	13 Sep 2020 05:25
URI:	http://repository.unika.ac.id/id/eprint/21954

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