Universitas Indonesia Conferences, International Accounting Conference - 2017

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CEO Tenure and Earning Management using CEO Career Origin and Affiliation Relationship as Moderating Variable
Massaid Bimo Setyawan, Viska Anggraita

Last modified: 2017-06-21

Abstract


Consensus about ownership concentration in Indonesian firms makes agency problem in Indonesia expected to be different from other countries. This study aimed to review the impact of CEO career concern on firms policy. The study used regression method with  samples of CEO on the Indonesia Stock Exchange in 2012 - 2014. Newly-appointed CEO have been proved to use real and accruals earnings management to increase profits in the early period of his tenure, while leaving CEO only used real earning management to increasing earning in his last year of appointment. CEO career origin and shareholder affiliation haven’t been proved to effecting newly-appointed CEO’s earning management. The study concluded the CEO’s preference to use real earning management during his tenures and encouraged the enforcement of regulation related to disclosure of management’s profile.


Keywords


Earning management, CEO tenure, CEO career origin, CEO affiliation, CEO career concern

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