Determinant of non-GAAP earnings management practices and its impact on firm value
This study aims to examine the factors that explain the reasons why non-GAAP earnings management is carried out based on the fraud diamond theory (FDT). FDT is a theory widely used in behavioral research to explain the factors that cause fraud in a company. In addition, this study also explains the...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2019-01-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23311975.2019.1666642 |
| _version_ | 1819194885193859072 |
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| author | Ewing Yuvisa Ibrani Faisal Faisal Yenny Dwi Handayani |
| author_facet | Ewing Yuvisa Ibrani Faisal Faisal Yenny Dwi Handayani |
| author_sort | Ewing Yuvisa Ibrani |
| collection | DOAJ |
| description | This study aims to examine the factors that explain the reasons why non-GAAP earnings management is carried out based on the fraud diamond theory (FDT). FDT is a theory widely used in behavioral research to explain the factors that cause fraud in a company. In addition, this study also explains the impact of non-GAAP earnings management practices on firm value. This study investigates 42 non-bank and financial companies listed on Indonesia Stock Exchange (IDX) for the period 2010–2017. The results of the logistic regression analysis founded that opportunity and ability were the most dominant factors causing non-GAAP earnings management. The findings of this study show that in Indonesia, there is need for greater attention from the regulators to the opportunity and capability factors to reduce the occurrence of non-GAAP earnings management. |
| first_indexed | 2024-12-23T02:03:58Z |
| format | Article |
| id | doaj.art-eae88120e1b84283aa5ee3ef159a64b9 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-12-23T02:03:58Z |
| publishDate | 2019-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-eae88120e1b84283aa5ee3ef159a64b92022-12-21T18:03:56ZengTaylor & Francis GroupCogent Business & Management2331-19752019-01-016110.1080/23311975.2019.16666421666642Determinant of non-GAAP earnings management practices and its impact on firm valueEwing Yuvisa Ibrani0Faisal Faisal1Yenny Dwi Handayani2Diponegoro UniversityDiponegoro UniversityMercu Buana UniversityThis study aims to examine the factors that explain the reasons why non-GAAP earnings management is carried out based on the fraud diamond theory (FDT). FDT is a theory widely used in behavioral research to explain the factors that cause fraud in a company. In addition, this study also explains the impact of non-GAAP earnings management practices on firm value. This study investigates 42 non-bank and financial companies listed on Indonesia Stock Exchange (IDX) for the period 2010–2017. The results of the logistic regression analysis founded that opportunity and ability were the most dominant factors causing non-GAAP earnings management. The findings of this study show that in Indonesia, there is need for greater attention from the regulators to the opportunity and capability factors to reduce the occurrence of non-GAAP earnings management.http://dx.doi.org/10.1080/23311975.2019.1666642non-gaap earnings managementfraud diamondpressureopportunityrationalizationcapability |
| spellingShingle | Ewing Yuvisa Ibrani Faisal Faisal Yenny Dwi Handayani Determinant of non-GAAP earnings management practices and its impact on firm value Cogent Business & Management non-gaap earnings management fraud diamond pressure opportunity rationalization capability |
| title | Determinant of non-GAAP earnings management practices and its impact on firm value |
| title_full | Determinant of non-GAAP earnings management practices and its impact on firm value |
| title_fullStr | Determinant of non-GAAP earnings management practices and its impact on firm value |
| title_full_unstemmed | Determinant of non-GAAP earnings management practices and its impact on firm value |
| title_short | Determinant of non-GAAP earnings management practices and its impact on firm value |
| title_sort | determinant of non gaap earnings management practices and its impact on firm value |
| topic | non-gaap earnings management fraud diamond pressure opportunity rationalization capability |
| url | http://dx.doi.org/10.1080/23311975.2019.1666642 |
| work_keys_str_mv | AT ewingyuvisaibrani determinantofnongaapearningsmanagementpracticesanditsimpactonfirmvalue AT faisalfaisal determinantofnongaapearningsmanagementpracticesanditsimpactonfirmvalue AT yennydwihandayani determinantofnongaapearningsmanagementpracticesanditsimpactonfirmvalue |