Determinants of Earning Management in Islamic Perspective

  • Himmiyatul Amanah Jiwa Juwita

Abstract

This study examines the effect of return on assets (ROA), debt capability, and company

size on earning management. The object of this study is the Islamic Boarding Schools
(Pesantren) Business Units across East Java, Indonesia which is believed that the earning
management practices in this object are less intense. The selected business unit shall reported
profits in the last five years continuously. A total of fourteen business units met the selection
criteria and were used as the sample. The hypotheses were tested using multiple linear
regressions. The results show that out of three independent variables, only debt capability
was not found to be significant predictor of earnings management, while return on assets
(ROA) and company size were found as significant predictors of earning management in
Pesantren business units.

Published
2017-09-30
How to Cite
JUWITA, Himmiyatul Amanah Jiwa. Determinants of Earning Management in Islamic Perspective. Management and Administrative Sciences Review, [S.l.], v. 6, n. 5, p. 172-183, sep. 2017. ISSN 2308-1368. Available at: <http://absronline.org/journals/index.php/masr/article/view/729>. Date accessed: 20 oct. 2017.