Proceedings of 2nd Annual Management, Business and Economic Conference (AMBEC 2020)

The Influence of Sharia Supervisory Board, Leverage, and Equitable Distribution Ratio on Earnings Management Practices in Islamic Banking

Authors
Bagas Brian Pratama, Muhammad Muwidha, Ari Kamayanti
Corresponding Author
Bagas Brian Pratama
Available Online 19 July 2021.
DOI
10.2991/aebmr.k.210717.013How to use a DOI?
Keywords
earning management, sharia supervisory board, leverage, equitable distribution ratio
Abstract

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.

Copyright
© 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/).

Download article (PDF)

Volume Title
Proceedings of 2nd Annual Management, Business and Economic Conference (AMBEC 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
19 July 2021
ISBN
10.2991/aebmr.k.210717.013
ISSN
2352-5428
DOI
10.2991/aebmr.k.210717.013How to use a DOI?
Copyright
© 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  -