The Influence of Sharia Supervisory Board, Leverage, and Equitable Distribution Ratio on Earnings Management Practices in Islamic Banking
- 10.2991/aebmr.k.210717.013How to use a DOI?
- earning management, sharia supervisory board, leverage, equitable distribution ratio
This study aims to explore the influence of the Sharia Supervisory Board, Leverage and Equitable Distribution Ratio on earnings management practices at Islamic Banking in Indonesia. The population in this study consisted of 15 Islamic Banking companies registered under the Financial Services Authority (OJK) during 2011-2018. The acquisition of a sample of 8 companies were determined through purposive sampling. The data were collected using the documentation method obtained from the company’s published annual reports. The data were then analyzed using the Multiple Linear Regression analysis technique which was processed using of the SPSS.25 program. The results showed that simultaneously all the independent variables tested had a significant effect on the earnings management with Adjusted R Square value of 25.3%. Meanwhile, partially the Sharia Supervisory Board had no significant effect on earnings management, while Leverage and Equitable Distribution Ratio had a significant negative effect on earnings management. The significant influence of Leverage and Equitable Distribution Ratio proves that managers have a high consideration of the company’s financial ratios in determining company policy. While the insignificant results from the other variables show the weak oversight function of the Sharia Supervisory Board in Islamic Banking.
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Bagas Brian Pratama AU - Muhammad Muwidha AU - Ari Kamayanti PY - 2021 DA - 2021/07/19 TI - The Influence of Sharia Supervisory Board, Leverage, and Equitable Distribution Ratio on Earnings Management Practices in Islamic Banking BT - Proceedings of 2nd Annual Management, Business and Economic Conference (AMBEC 2020) PB - Atlantis Press SP - 60 EP - 64 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210717.013 DO - 10.2991/aebmr.k.210717.013 ID - Pratama2021 ER -