COMPANY SIZE IN RESPONSE TO EARNINGS MANAGEMENT AND COMPANY PERFORMANCE
DOI:
https://doi.org/10.14414/jebav.v15i3.117Keywords:
Company Size, Earnings Management, CGPI, Corporate PerformanceAbstract
Company size has been assumed to be an influential factor in any businesses. Therefore, anycompany might be also induced by this factor when dealing with its performance. This researchaimed to analyze the effect of firm size on earnings management and corporate performance.This study was done by means of census with the population of 69 go public companies.They have been the participants of Corporate Governance Perception Index (CGPI)period 2004-2008. The variable of company size was measured by using the logarithm ofassets while that of earnings management using discretionary accruals. In measuring firmperformance variable, the study uses Tobins Q. The results of this study show a significantnegative effect of firm size on earnings management. Large-sized companies will avoid doingearnings management. Beside, the size of company has a significant and positive effect oncompany performance. Large-sized companies will have a chance to get a greater opportunityto profit through the sale of shares.References
Alwan, Sri Kustono, 2009, ‘Pengaruh ukuran,
devidend payout, risiko spesifik,
dan pertumbuhan perusahaan terhadap
praktik perataan laba pada perusahaan
manufaktur studi empiris Bursa Efek
Jakarta 2002–2006’, Jurnal Ekonomi
Bisnis, Vol. 14 Nomer 3, pp. 200 –
Ashari, N, Hian C, Koh, Soh L, Tan and
Wei H, Wong, 1994, ‘Factors affecting
income smoothing among listed
companies in Singapore’, Accounting
and Business Research, 24 (96), pp.
-301.
Assih, Prihat, Parawiyati, Ambar Woro,
, ‘Pengaruh manajemen laba
pada nilai dan kinerja perusahaan periode
penawaran publik perdana’,
Konferensi Nasional Akuntansi, pp. 1-
Atik, A, and N, Sensoy, 2004, ‘Detecting
income smoothing behaviours of
Turkish listed firms through discretionary
accounting changes’, Working
Paper, www.SSRN.com, (viewed 10
July 2009).
Atkins, M, and John F, Lowe, 1997, ‘Sizing
up the small firm: UK and Australian
experience’, International Small Business
Journal, 15 (3), pp. 42-55.
Axtell, R 2006, ‘Firm sizes: facts, formulae,
fables, and fantasies’, Working Paper,
No. 44, CSED Washington, The
Brookings Institution.
Ball, R and P, Brown, 1968, ‘An empirical
evaluation of accounting income number’, Journal of Accounting Research,
Vol. 6, pp. 159-178.
Beattie, RP, and E, Zajac, 1994, ‘Managerial
incentives monitoring and risk
bearing: a study executive compensation,
ownership and board structure in
initial public offering’, Administrative
Science Quarterly, Vol. 39, pp. 313-
Chaganti, Rajeswararao and Fariborz Damanpour,
, ‘Institusional ownership,
capital structure and firm performance’,
Strategic Management
Journal, October, Vol. 12, pp. 479-
Chaney, PK, and CM, Jeter, 1992, ‘The
effect of size on the magnitude of
long-window earnings response coefficient’,
Contemporary Accounting
Research, Vol. 8, pp. 540-560.
Chichello, Michael, S 2005, ‘The impact of
firm size on pay–performance sensitivities’,
Journal of Corporate Finance,
Vol. 11, pp. 609– 627.
Dechow, PM, Sloan, RG, Sweeney, AP
, ‘Detecting earnings management’,
Accounting Review, Vol. 70,
pp. 193–225.
Darraugh, MN, H, Pourjalali and SM, Saudagaran,
, ‘Earnings management
in Japanese companies’, The International
Journal of Accounting, 33 (3),
pp. 313-334.
Elton, E, and M, Gruber, 2000, Modern
portfolio theory and investment analysis,
New York: John Wiley and Sons.
Foster, G 1978, ‘Accounting earnings and
stock price of insurances companies’,
The Accounting Review, October, pp.
-698.
Gumanti, 2000, ‘Motivasi dibalik earnings
management’, Usahawan Indonesia,
No. 12/Th. XXXII, Desember.
Harjito, D, Agus and Nurfauziah, 2006,
‘Hubungan kebijakan hutang, insider
ownership dan kebijakan dividen dalam
masalah agensi di Indonesia’,
JAAI, Vol. 10, No. 2.
Hartono M, Jogiyanto, 2000, Teori Portofolio
dan Analisis Investasi, Edisi Pertama,
Yogyakarta: BPFE.
Hastuti, Sri and Ponty Sya’banto Putra Hutama,
, ‘Perbedaan perilaku earnings
management berdasarkan pada
perbedaan life cycle dan ukuran perusahaan,
SNA XII, Purwokerto, IAI.
Healy, PM 1995, ‘The effect of bonus
schemes on accounting decisions’,
Journal of Accounting and Economic,
pp. 85-107.
Healy, PM & JM Wahlen, 1999, ‘A review
of the earnings management literature
and its implications for standard setting’,
Accounting Horizons, vol. 13,
no. 4, pp. 365-383.
IICG (The Indonesian Institute for Corporate
Governance), 2005, Laporan hasil
riset dan pemeringkatan corporate
governance perception index 2004,
internalisasi good corporate governance
dalam proses bisnis.
IICG (The Indonesian Institute for Corporate
Governance), 2006, Laporan hasil
riset dan pemeringkatan corporate
governance perception index 2005,
mewujudkan good corporate governance
sebagai sebuah sistem.
IICG (The Indonesian Institute for Corporate
Governance), 2007, Laporan hasil
riset dan pemeringkatan corporate
governance perception index 2006,
menyempurnakan good corporate
governance sebagai sebuah sistem.
IICG (The Indonesian Institute for Corporate
Governance), 2008, Laporan hasil
riset dan pemeringkatan corporate
governance perception index 2007,
aktualisasi good corporate governance
sebagai sebuah sistem.
IICG (The Indonesian Institute for Corporate
Governance), 2009, Laporan hasil
riset dan pemeringkatan corporate
governance perception index 2008,
good corporate governance dalam
perspektif manajemen strategik.
Jin, Liauw S, and M, Machfoedz, 1998,
‘Faktor-faktor yang mempengaruhi
praktik perataan penghasilan pada perusahaan yang terdaftar di Bursa Efek
Jakarta’, Jurnal Riset Akuntansi Indonesia,
Vol. 1 (2), pp. 174-191.
Kamarudin, Khairul Anuar B, Wan Adibah
BW Ismail, and Muhdi K Ibrahim,
, ‘Market perception of income
smoothing practices: Malaysian evidence,
Working paper, http://siness.
org/biz2003proceecings/Khairul%20
Kamarudin%201.pdf, viewed 4 March
Kim, JS, and WC, Hamner, 1976, ‘Effect of
performance feedback and goal setting
on productivity and satisfaction
in an organizational setting’, Journal
of Applied Psychology, pp. 45-57.
Kumar, Khrisna B, Raghuram G, Rajan and
L, Zingales, 1999, ‘What determines
firm size?’, Working Paper, Chicago:
Graduate School of Business, University
of Chicago.
Levit Jr, A 1998, ‘The numbers game’, The
CPA Journal, December, pp. 15-19.
Makaryanawati. 2003, ‘Analisis perbedaan
praktik perataan penghasilan melalui
ukuran perusahaan’, Ekuitas Jurnal
Ekonomi dan Keuangan. Vol. 7 (1).
pp. 1-15.
Moses, Douglas O 1987, ‘Income smoothing
and incentives: empirical test using
accounting changes’, The Accounting
Review, Vol. 62 (2), pp. 358-
Purba, EM 1997, ‘Return harga saham di
sekitar pengumuman laporan keuangan’,
Tesis, Yogyakarta, Pascasarjana
Universitas Gajah Mada.
Rhoades, Dawna L, Paula L, Rechner and
Chamu Sundaramurthy, 2002, ‘Board
composition and financial performance:
a Meta analysis of the influence
of outside directors’, Journal of Management,
Issues, Pittsburg: Spring,
Vol. 12, Issue 1, pp. 76-91.
Schipper, Katherine, 1989, ‘Earnings management’,
Accounting Horizon, Dec.
pp. 91-102.
Scott, William R, 2006, Financial accounting
theory, Fourth edition, Canada:
Prentice Hall.
Slovin, Myron B, and Marie, E, Sushka,
, ‘Ownership concentration, corporate
control activity & firm value:
evidence firm’, Journal of Finance,
Vol. 48, pp. 1293-1321.
Soliha, Euis and Taswan, 2002, ‘Pengaruh
kebijakan hutang terhadap nilai perusahaanserta
beberapa faktor yang
mempengaruhinya’, Jurnal Bisnis
Ekonomi, (online),
http//www.google.co.id, Viewed 21
October 2008.
Sujana, I Ketut, 2004, Pengaruh exdividend
day terhadap harga saham
(studi empiris perusahaan perbankan
dan non perbankan)’, Buletin Studi
Ekonomi. Vol. 9 (1). pp. 73-83. Denpasar.
Sujoko and Ugy Soebiantoro, 2002, ‘Pengaruh
struktur kepemilikan saham,
leverage, faktor intern dan faktor ekstern
terhadap nilai perusahaan’,
Jurnal Manajemen dan Kewirausahaan,
(online), Vol. 9, No. 1
(http//www.google co.id, viewed 22
October 2008).
Suwito, E, and A, Herawaty, 2005, ‘Analisis
pengaruh karakteristik perusahaan
terhadap tindakan perataan
penghasilan yang dilakukan oleh perusahaan
yang terdaftar di Bursa
Efek Jakarta’, Kumpulan Makalah,
Simposium Nasional Akuntansi VIII,
pp. 136-146.
Veronica NP Siregar, Sylvia, and
Siddharta Utama, 2005, ‘Pengaruh
struktur kepemilikan, ukuran perusahaan,
dan praktik corporate governance
terhadap pengelolaan laba’,
Kumpulan Makalah, Simposium Nasional
Akuntansi VIII, Ikatan Akuntan
Indonesia.
Wasilah, 2005, ‘Hubungan antara asimetri
informasi dengan praktek perataan
penghasilan’, Jurnal Akuntansi dan
Keuangan Indonesia, 2 (1), pp. 1-23.
Watts and Zimmerman, 1986, Positive Accounting
theory. The accounting theory, New Jersey: Prentice Hall International
Inc.
Watts and Zimmerman, 1990, ‘Positive accounting
theory: a ten years perspective’,
The Accounting Review, Vol.
, No. 1, January.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2012 Eni Wuryani
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
