Accounting Analysis Journal

The Role of The Company Life Cycle on Chief Executive Officer Power and Earnings Management

Akhmad Sigit Adiwibowo, Putri Nurmala — Mon, 12 Jun 2023 11:02:12 +0700

Purpose : This study aims to re-examine whether chief executive officer (CEO) power affects earnings management and whether company life cycles can moderate the effect of CEO power on earnings management.

Method : This study used publicly listed companies in the Indonesia Stock Exchange period 2017-2021, are 74 companies, or 370 data, were picked using a purposive sampling method that eliminates companies with outliers. This research uses panel data regression with a random effect model to examine CEO power on earnings management with the company’s life cycle as moderating variables.

Findings : This study finds that CEO power does not affect earnings management, and the decline stage can moderate the effect of CEO power on earnings management. However, the introduction, growth, and mature stage cannot moderate the effect of CEO power on earnings management.

Novelty : This study contributes to the literature on earnings management by highlighting CEO power in Indonesian companies with different life cycles. This study provides a unique perspective on earnings management, especially in emerging markets like Indonesia.

Keywords : CEO’s Power, Earnings Management, Company Life Cycle

Awareness of Economic, Environmental, and Social Issues and Financial Soundness–Does The Covid-19 Pandemic Matter?

Hasan Mukhibad, Bayu Bagas Hapsoro — Thu, 22 Jun 2023 17:46:44 +0700

Purpose : Regulators, the public and researchers emphasize the business world to increase awareness of economic, environmental, and social issues as corporate social responsibility (CSR). However, the economic consequences of CSR are still being debated. This study proves the role of CSR disclosure on financial soundness and the role of the coronavirus disease (covid-19 pandemic) in the relationship between the two.

Method : The research sample is a manufacturing company listed on the Indonesia Stock Exchange, with observations from 2015 to 2021. Data analysis uses panel data regression.

Findings : The results showed that CSR disclosure does not affect financial soundness, but the interaction between CSR and covid-19 pandemic negatively affects financial soundness. Therefore, covid-19 pandemic plays a major role in the extent to which CSR affects financial soundness. We will conduct regression analysis with other indicators of financial soundness to assess the robustness of our findings.

Novelty : The study contributes to the expansion of the prior literature in two important ways. First, we use the financial soundness consequences of CSR disclosures. This study provided evidence of covid-19’s effect on CSR disclosures.

Keywords : Customer Loyalty; Environmental Concern; Risk, Covid-19 Pandemic

The Moderating Effect of Abusive Supervision on Religiosity and Whistleblowing Relationship: An Experimental Investigation

Khusnul Jannah, Frida Fanani Rohma, Imam Agus Faisol — Tue, 27 Jun 2023 15:08:57 +0700

Purpose: This study examines the causal relationship between religiosity on whistleblowing. Besides, this study also identifies the moderating role of abusive supervision on the relationship between those two variables.

Method: This study used a 2 × 2 between-subjects laboratory experiment with accounting undergraduate students as the subjects. The religiosity is categorized into two levels (high and low). The variable of abusive supervision is manipulated into two levels (high and low).

Findings: High religiosity increase whistleblowing. Also, abusive supervision negatively influences whistleblowing. However, abusive supervision moderates the causal relationship between religiosity and whistleblowing. The study demonstrates the significant impact of abusive supervision on an unwillingness to blow the whistle, although the individual is embedded in religious values.

Novelty: This study fills a gap in the literature by showing that the tune of the top with a higher hierarchical structure can make an individual's values mingle with the organizational environment and impact his decision to blow the whistle. Furthermore, this research contributes to the conservation of resource theory by providing evidence that superiors have an essential role in molding the behavior of human resources in organizations.

Keywords: Abusive Supervision, Decision-Making, Religiosity, Whistleblowing