Presenters: Eka Apriani Mustikaningrum, Sayekti Endah Retno Meilani
Affiliation: UIN Raden Mas Said Surakarta
Room: 7
ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, held on [specific date], researchers Eka Apriani Mustikaningrum and Sayekti Endah Retno Meilani from UIN Raden Mas Said Surakarta presented their study titled “Internal Control, Debt Risk, CEO Education and Real Earnings Management in Consumer Non-Cyclicals Companies in Indonesia.”
The study investigates the impact of internal control, debt risk, and CEO education on real earnings management in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023. Using secondary data from annual company reports, the researchers employed a purposive sampling technique to select a sample of 58 companies, totaling 173 data points. The analysis was conducted using panel data regression with the assistance of the EViews 12 program.
Their findings reveal that real earnings management in these companies is not significantly influenced by internal control or the educational level of the CEO. However, debt risk and control variables such as Return on Assets (ROA) and Operating Cash Flow (OCF) do have a significant impact. This suggests that financial variables play a more crucial role in shaping real earnings management practices in Indonesia’s non-cyclical consumer sector than non-financial factors like the quality of internal controls and CEO education.
The presentation shed light on the intricate dynamics of earnings management, providing valuable insights for policymakers, regulators, and industry practitioners aiming to enhance corporate governance and financial reporting standards in the sector.