Open AccessEARNINGS MANAGEMENT FOR BONUS COMPENSATION
Author(s) -
Isyrohil Muyassaroh,
Imam Subekti,
Zaki Baridwan
Publication year - 2021
Publication title -
trikonomika
Language(s) - English
Resource type - Journals
eISSN - 2355-7737
pISSN - 1411-514X
DOI - 10.23969/trikonomika.v20i1.1635
Subject(s) - earnings management , nonprobability sampling , allowance (engineering) , loan , commit , sample (material) , business , accounting , earnings , test (biology) , actuarial science , economics , finance , operations management , population , demography , paleontology , chemistry , chromatography , database , sociology , computer science , biology
The objectives of this quantitative study are to investigate the practice of earnings management which is proxied by Loan Loss Provision and Loan Loss Allowance and to assess the effect of bonuses on earnings management practices. Using purposive sampling, 102 banks were selected as the sample. The assessment includes one-sample t test and linear regression test. This study finds that banks commit earnings management practices by reducing LLA values and that bonuses negatively influence the practice of earnings management as proxied by LLP.