Abstract
The purpose of this research is to determine the effect of CEO’s and CFO’s short tenure on earnings management behavior through discretionary accrual and real activity. A CEO will earn a good reputation if they can generate higher profits for the company during their tenure; hence, there is evidence that they may manage their earnings during their early years of their tenure based on their discretion as the CEO and so will the CFO. This research uses manufacturing companies listed in the Indonesia Stock Exchange as a sample population. The results show that CEO’s and CFO’s early years of tenure do not have a positive effect toward their earnings management behavior. This research also finds that institutional ownership can strengthen the positive effect of the CEO’s early years of tenure on earnings management behavior.
| Original language | English |
|---|---|
| Title of host publication | Accounting, Auditing, CSR, and the Taxation in a Changing Environment |
| Subtitle of host publication | A Study on Indonesia |
| Publisher | Nova Science Publishers, Inc. |
| Pages | 187-206 |
| Number of pages | 20 |
| ISBN (Electronic) | 9781536165180 |
| ISBN (Print) | 9781536162776 |
| Publication status | Published - 1 Jan 2019 |
Keywords
- CEO tenure
- CFO tenure
- Earnings management
- Monitoring system