The effect of internal control information disclosure on earnings management

Andhika Suhud, Ratna Wardhani

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Internal control information disclosure is an indicator that the company have an effetive and efficien operational. The measurement of internal control information disclosure use an index from the company disclosure. This study demonstrates that the information must disclosed by the companies like internal environment, risk evalution, control activities, internal control over financial reporting, internal supervision, compliance of corporate governance, and internal assessment, these information must disclosed by the companies to ensure disclosure of internal control information have a high quality. This study examines the effect of internal control information disclosure on earnings management in Indonesia. The sample used on this study is all of the companies listed on the stock exchanges of Indonesia during period 2015-2016 with 673 samples. Based on the results of the regression model, there is a negative coefficient between internal control information disclosure and earnings management. The higher quality of internal control information disclosure, the lower of earnings management applied by the company. This study contributes to the internal control literature by extending the evidence for internal control information disclosure and examining the impact of disclosure on earnings management.

Original languageEnglish
Title of host publicationProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
Subtitle of host publicationEducation Excellence and Innovation Management through Vision 2020
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages9389-9398
Number of pages10
ISBN (Electronic)9780999855126
Publication statusPublished - 1 Jan 2019
Event33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 - Granada, Spain
Duration: 10 Apr 201911 Apr 2019

Publication series

NameProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020

Conference

Conference33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
CountrySpain
CityGranada
Period10/04/1911/04/19

Keywords

  • Earnings management
  • Internal control
  • Internal control information disclosure

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