Keywords
Covid-19
Earnings Management
Governance
How to Cite
How to Cite
Abstract
This study investigates how companies managed their earnings during the COVID-19 pandemic, focusing on Indonesia from early 2020. The non-financial sample is drawn from the Indonesia Stock Exchange for 2018-2019, utilizing the ordinary least square model with fixed effects and a cluster approach. Coarsened exact matching in STATA 16.0 is employed for additional analysis. Findings reveal that during the pandemic, companies engaged in earnings management exhibited negative sentiment in their annual reports for the following year. Corporate governance, exemplified by independent commissioners and risk management committees, proves instrumental in mitigating sentiment issues. This study contributes significantly to corporate reporting research, offering vital insights for decision-makers shaping effective and country-specific policies amid the ongoing Covid-19 outbreak, particularly in emerging markets like Indonesia, where financial stability, transparency, and robust corporate governance are crucial for ensuring economic recovery, sustaining growth, maintaining investor confidence, and supporting long-term economic resilience, sustainable development, and future stability.
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