Article Sidebar

Submitted
June 5, 2024
Accepted
August 26, 2025
Published
September 22, 2025
Download
Full text PDF
Statistic
Read Counter : 368 Download : 288

Downloads

Download data is not yet available.

Main Article Content

Abstract

Purpose – This research is to analyze the influence of financial distress on earnings management and analyze the role of Good Corporate Governance as proxied by independent commissioners in moderating the influence of financial distress on earnings management in banking companies on the Indonesia Stock Exchange for the 2018-2024 period.
Design/methodology/approach – The sample in this study was determined using purposive sampling. The sample size is 150 company annual reports. Data collection uses documentation. Data analysis uses multiple regression and moderated regression analysis (MRA).
Findings – Financial distress is proven to influence earnings manage¬ment. This means that when a company faces financial difficulties, management will usually carry out earnings management to cover up the financial difficulties faced so it looks good in the eyes of stakeholders. With the implementation of independent commissioners as supervisors and givers of advice who come from outside the company, it will weaken the relationship between financial distress and earnings management. This means that earnings management will go down along with the imple¬mentation of good corporate governance as proxied by independ¬ent commissioners.
Research limitations/implications – The contribution presented to the independent variable on the profit-related variable is in a small group, so that there are suggestions for further studies to add related variables to this external study area and apply other sectors for future studies.
Practical implications – This research provides practical benefits to banking company management to avoid earnings management practices by implementing independent commissioners.
Originality/value – Previous research linking the influence of financial distress on earnings management with independent commissioner moderation has not been widely conducted and the results are still varied.

Keywords

financial distress independent commissioners earnings management

Article Details

License

Copyright (c) 2025 Eny Widayawati

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Widayawati, E., Saroh, S., Trianti, K., & Anastuti, K. U. (2025). The role of corporate governance in moderating the influence of financial distress on earnings management. Jurnal Siasat Bisnis, 29(2), 250–264. https://doi.org/10.20885/jsb.vol29.iss2.art8
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Anagnostopoulou, S. C., Gounopoulos, D., Malikov, K., & Pham, H. (2021). Earnings management by classification shifting and IPO survival. Journal of Corporate Finance, 66, 101796. https://doi.org/10.1016/j.jcorpfin.2020.101796
  2. Butar, S. B. (2014). Implikasi Regulasi Pasar Modal Terhadap Motif Manajemen Laba: Pengujian Berbasis Teori Pensinyalan. Jurnal Akuntansi Dan Keuangan Indonesia, 11(1), 99–119. https://doi.org/10.21002/jaki.2014.06
  3. Celli, M. (2015). Can Z-Score Model Predict Listed Companies’ Failures in Italy? An Empirical Test. International Journal of Business and Management, 10(3). https://doi.org/10.5539/ijbm.v10n3p57
  4. Chairunesia, W., Sutra, P. R., & Wahyudi, S. M. (2018). Pengaruh Good Corporate Governance Dan Financial Distress Terhadap Manajemen Laba Pada Perusahaan Indonesia yang Masuk Dalam ASEAN Corporate Governance Scorecard. Jurnal Profita, 11(2), 232. https://doi.org/10.22441/profita.2018.v11.02.006
  5. Chairunnisa, Z., Rasmini, M., & Alexandri, M. B. (2021). Pengaruh Financial Distress terhadap Manajemen Laba pada Perusahaan Sub Sektor Telekomunikasi yang Terdaftar di BEI Periode 2015-2019. INOVASI: Jurnal Ekonomi, Keuangan Dan Manajemen, 17(3), 387–394.
  6. Damayanti, C. R., & Kawedar, W. (2018). Pengaruh Profitabilitas, Mekanisme Pemantauan dan Financial Distress Terhadap Manajemen Laba. Diponegoro Journal of Accounting, 7(4), 1–9. https://ejournal3.undip.ac.id/index.php/accounting/article/view/25615
  7. Dechow, P. M., Hutton, A. P., Kim, J. H., & Sloan, R. G. (2012). Detecting Earnings Management: A New Approach. Journal of Accounting Research, 50(2), 275–334. https://doi.org/10.1111/j.1475-679X.2012.00449.x
  8. Dhaneswari, N., & Widuri, R. (2013). Pengaruh Asimetri Informasi, Ukuran Perusahaan, dan Beban Pajak Tangguhan Terhadap Praktik Manajemen Laba di Perusahaan Manufaktur Terdaftar di Bursa Efek Indonesia (BEI) 2010-2012. Tax & Accounting Review, 3(2), 2010–2012.
  9. Fathiha, A. U. A., & Usman, A. (2024). The Influences of Financial Distres and Internal Control on Earnings Management with Good Corporate Governance as a Moderating Variable. Jurnal Riset Akuntansi Dan Keuangan, 12(3), 1271–1286. https://ejournal.upi.edu/index.php/JRAK/article/download/75615/29909
  10. Faukha, U. Z., & Suwarno, S. (2024). Pengaruh Financial Distress, Free Cash Flow, dan Earning Power terhadap Manajemen Laba. Akuntansi Dan Ekonomi Pajak: Perspektif Global, 1(3), 312–333. https://doi.org/10.61132/aeppg.v1i3.416
  11. FGCI. (2011). Tata Kelola Perusahaan Corporate Governance. Forum for Corporate Governance in Indonesia.
  12. Handriani, E., & Robiyanto, R. (2018). Institutional ownership, independent board, board size, and firm performance: Evidence from Indonesia. Contaduría y Administración, 64(3), 118. https://doi.org/10.22201/fca.24488410e.2018.1849
  13. Hapsoro, D., & Hartomo, A. B. (2016). Keberadaan Corporate Governance Sebagai Variabel Moderasi Pengaruh Financial Distress Terhadap Earnings Management. Jurnal Ekonomi Dan Bisnis, 19(1), 91. https://doi.org/10.24914/jeb.v19i1.507
  14. Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature and its Implications for Standard Setting. SSRN Electronic Journal, November. https://doi.org/10.2139/ssrn.156445
  15. Hussain, S. M., Ahmad, N., & Ahmed, S. (2023). Applications of High-Frequency Data in Finance: A Bibliometric Literature Review. International Review of Financial Analysis, 89, 102790. https://doi.org/10.1016/j.irfa.2023.102790
  16. Jacoby, G., Li, J., & Liu, M. (2019). Financial distress, political affiliation and earnings management: the case of politically affiliated private firms. The European Journal of Finance, 25(6), 508–523. https://doi.org/10.1080/1351847X.2016.1233126
  17. Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  18. Jones, J. J. (1991). Earnings Management During Import Relief Investigations. Journal of Accounting Research, 29(2), 193. https://doi.org/10.2307/2491047
  19. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2017). Intermediate Accounting, 2nd Edition, IFRS Edition (2nd ed.). John Wiley & Sons, Ltd.
  20. KNK. (2006). Pedoman Umum Good Corporate Governance Indonesia. Komite Nasional Kebijakan Governance.
  21. Kristyaningsih, P., Hariyani, D. S., & Sudrajat, M. A. (2021). Financial Distress Terhadap Manajemen Laba. Business Innovation and Entrepreneurship Journal, 3(3), 151–156. https://doi.org/10.35899/biej.v3i3.297
  22. Kurnia, B., & Mulyati, Y. (2023). Pengaruh Free Cash Flow dan Financial Distress Terhadap Manajemen Laba pada Perusahaan Infrastruktur, Utilitas, dan Transportasi Terdaftar Di Bursa Efek Indonesia. Owner, 7(2), 1596–1611. https://doi.org/10.33395/owner.v7i2.1395
  23. Law No. 40/2007 of the Republic of Indonesia Concerning Limited Liability Companies (2007). https://peraturan.bpk.go.id/Details/39965
  24. Lo, E. W. (2012). Pengaruh Tingkat Kesulitan Keuangan Terhadap Manajemen Laba: Teori Keagenan Versus Teori Signaling. Jurnal Riset Akuntansi Dan Keuangan, 8(1), 1. https://doi.org/10.21460/jrak.2012.81.27
  25. Medyawati, H. (2016). Pengaruh ukuran perusahaan terhadap manajemen laba: analisis data panel. 21(3).
  26. Mellennia, D. A., & Khomsiyah. (2023). Financial Distress Terhadap Praktik Manajemen Laba dan Good Corporate Governance Sebagai Variabel Moderasi di Masa Pandemi Covid-19. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 18(1), 69–86. https://doi.org/10.25105/jipak.v18i1.15768
  27. Mustika, M., Ardheta, P. A., & Paembonan, Y. R. (2020). Pengaruh Financial Distress dan Komite Audit Terhadap Manajemen Laba Pada Sektor Pertambangan. Jurnal STEI Ekonomi, 29(01), 71–78. https://doi.org/10.36406/jemi.v29i01.300
  28. Paramita, N. N. E. Y., Sujana, E., & Herawati, N. T. (2017). Pengaruh Financial Distress, Risiko Litigasi dan Pengungkapan Corporate Social Responsibility Terhadap Manajemen Laba. E Journal Akuntansi, 8(2). https://doi.org/https://doi.org/10.23887/jimat.v8i2.13157
  29. Peter, P., & Yoseph, Y. (2011). Analisis Kebangkrutan Dengan Metode Z-Score Altman, Springate Dan Zmijewski Pada PT. Indofood Sukses Makmur Tbk Periode 2005–2009. Akurat Jurnal Ilmiah Akuntansi, 4(2), 1–20. https://www.neliti.com/publications/220173/analisis-kebangkrutan-dengan-metode-z-score-altman-springate-dan-zmijewski-pada
  30. Pratama, A. G., & Rahardja, R. (2013). Pengaruh Good Corporate Governance dan Kinerja Lingkungan terhadap Pengungkapan Lingkungan (Studi Empiris pada Perusahaan Manufaktur dan Tambang yang Terdaftar pada Bursa Efek Indonesia (BEI) dan Termasuk dalam Proper Tahun 2009-2011). Diponegoro Journal of Accounting, 2(3), 67–80. https://ejournal3.undip.ac.id/index.php/accounting/article/view/3379
  31. Radifan, R., & Yuyetta, E. N. A. (2015). Analisis Pengaruh Mekanisme Good Corporate Governance Terhadap Kemungkinan Financial Distress. Diponegoro Journal Of Accounting, 4(3), 1–11. https://www.neliti.com/publications/254268/analisis-pengaruh-mekanisme-good-corporate-governance-terhadap-kemungkinan-finan
  32. Riadiani, A. R., & Wahyudin, A. (2015). Pengaruh Good Corporate Governance Terhadap Manajemen Laba Dengan Financial Distress Sebagai Intervening. Accounting Analysis Journal, 4(3), 1–9. https://doi.org/https://doi.org/10.15294/aaj.v4i3.8307
  33. Sabaruddin, R., Musa, H., & Muldani, V. (2022). Pengaruh Finansial Distress dan Kinerja Keuangan Terhadap Manajemen Laba pada Perusahaan Manufaktur Yang Terdaftar di BEI Periode Tahun 2019-2021. Jurnal Ekonomi Efektif, 5(1), 125. https://doi.org/10.32493/JEE.v5i1.23992
  34. Santoso, A. (2023). The Effect of Free Cash Flow and Leverage on Earnings Management: Moderating Role of Good Corporate Governance. Asian Management and Business Review, 3(1), 14–23. https://dx.doi.org/10.20885/AMBR.vol3.iss1art2
  35. Senjaya, S., Randa, F., & Sampe, F. (2021). Pengaruh CSR Terhadap Nilai Perusahaan: Integrasi Manajemen Laba Sebagai Mediasi dan Kepemilikan Keluarga Sebagai Moderasi. Jurnal Magister Akuntansi Trisakti, 8(1), 1–20. https://doi.org/10.25105/jmat.v8i1.7971
  36. Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355. https://doi.org/10.2307/1882010
  37. Sunanto, G. B. A., Sunanto, S., & Suhartono, A. (2023). Memprediksi Kondisi Financial Distress Perusahaan dengan Menggunakan Metode Altman Z – Score (Studi Kasus Pada Perusahaan Retail yang Terdaftar di Bursa Efek Indonesia Periode 2017-2021). SCIENTIFIC JOURNAL OF REFLECTION : Economic, Accounting, Management and Business, 6(3), 609–617. https://doi.org/10.37481/sjr.v6i3.702
  38. Supardi, S., & Asmara, E. N. (2019, January). Financial Factors, Corporate Governance and Earnings Management: Evidence from Indonesian manufacturing industry. Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018). https://doi.org/10.2991/icebef-18.2019.154
  39. Susilawati, S. (2021). Analisis Likuiditas, Leverage dan Arus Kas Terhadap Financial Distress dengan Profitabilitas Sebagai Variabel Moderating (Studi Kasus Pada Perusahaan Pertambangan Sub Sektor Batubara Yang Terdaftar Di BEI Periode Tahun 2012 -2018). JURNAL AKUNTANSI, 10(1), 49–62. https://doi.org/10.37932/ja.v10i1.226
  40. Sutapa, I. N., & Suputra, I. D. G. D. (2016). Dampak Interaksi Asimetri Informasi terhadap Ukuran Perusahaan, Leverage dan Kompensasi Pada Manajemen Laba. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 5(4), 931–956. https://doi.org/https://doi.org/10.38156/gesi.v9i1.365
  41. Sutino, E. R. D., & Khoiruddin, M. (2016). Pengaruh Good Governance Terhadap Manajemen Laba Pada Perusahaan Yang Masuk Dalam JII (Jakarta Islamic Index) Tahun 2012-2013. Management Analysis Journal, 5(3), 156–166. https://journal.unnes.ac.id/sju/maj/article/view/8274
  42. Van Horne, J. C., & Wachowicz, J. M. (2005). Fundamentals of Financial Management. Financial Times Prentice Hall. https://books.google.co.id/books?id=CPGC4pD2pQ0C
  43. Veno, A., & Sasongko, N. (2017). Pengaruh Asimetri Informasi Terhadap Manajemen Laba dengan Good Corporate Governance Sebagai Variabel Moderasi. Jurnal Manajemen Dayasaing, 18(1), 64. https://doi.org/10.23917/dayasaing.v18i1.3819
  44. Wedari, L. K. (2004). Analisis pengaruh proporsi dewan komisaris dan keberadaan komite audit terhadap aktivitas manajemen laba. Simposium Nasional Akuntansi, 7, 963–974.
  45. Windharta, S. W., & Ahmar, N. (2014). Pengaruh Manajemen Laba Akrual dengan Pendekatan Revenue Discretionary Model terhadap Kinerja Perusahaan. TRIKONOMIKA, 13(1), 108. https://doi.org/10.23969/trikonomika.v13i1.489
  46. Wruck, K. H. (1990). Financial distress, reorganization, and organizational efficiency. Journal of Financial Economics, 27(2), 419–444. https://doi.org/10.1016/0304-405X(90)90063-6
  47. Zhou, F., Fu, L., Li, Z., & Xu, J. (2022). The Recurrence of Financial Distress: A Survival Analysis. International Journal of Forecasting, 38(3), 1100–1115. https://doi.org/10.1016/j.ijforecast.2021.12.005