Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)

The Impact of Audit Committee Characteristics on Real Earnings Management: The Moderating Role of Seniority Level and Education Level of Chief Financial Officer

Authors
Michelle Tevi Goeinawan1, *, Micheline Clarissa1, Yulius Jogi Christiawan1
1Department of Business Accounting, Petra Christian University, Surabaya, Indonesia
* Corresponding author. Email: d12180171@john.petra.ac.id
Corresponding Author
Michelle Tevi Goeinawan
Available Online 25 November 2021.
DOI
10.2991/aebmr.k.211124.020How to use a DOI?
Keywords
Audit committee characteristics; Education level; Real earnings management; Seniority level; Upper-echelon theory
Abstract

The aim study of the Impact of audit committee characteristics, especially at composition of women on real earnings management, has been widely carried out with mixed results. Upper-echelon theory explains that the characteristics of its leaders will influence the company’s performance. The achievement of profits reflected the company’s performance. To achieve the profit target, companies need the characteristic of the Chief Monetary Officer (CFO). CFOs who has insight, broad experience and good communication skills will be more considerate and careful in carrying out earnings management to strengthen company performance. The characteristics of the company’s leadership meant are the level of seniority and education of the CFO. Seniority and training stage of CFO are concept to have an effect on the connection between the characteristic of the audit committee and the real income management of an organization. This study aims to examine whether the stage of CFO seniority and schooling can affect the relationship between audit committee characteristics and real salary management. The researchers conducted the find out about on 351 agencies in all sectors, besides banking, which have been listed on the IDX in 2018-2019. The statistics evaluation used panel records regression the use of Gretl software. The consequences of trying out the data proved that greater women composition in the audit committee would probably make bigger the practice of actual profits management. Furthermore, the expand in actual salary administration due to the extra composition of women on the audit committee will be weaker in businesses with a excessive degree of CFO seniority compared to those with low CFO seniority levels. This learn about failed to show the moderating position of CFO training on the relationship between woman composition in the audit committee with real income management. The researchers anticipate the study consequences are useful for shareholders to pay greater interest to the composition of women in the audit committee, the level of seniority, and the schooling of CFOs to avoid real earnings management practices.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
25 November 2021
ISBN
10.2991/aebmr.k.211124.020
ISSN
2352-5428
DOI
10.2991/aebmr.k.211124.020How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Michelle Tevi Goeinawan
AU  - Micheline Clarissa
AU  - Yulius Jogi Christiawan
PY  - 2021
DA  - 2021/11/25
TI  - The Impact of Audit Committee Characteristics on Real Earnings Management: The Moderating Role of Seniority Level and Education Level of Chief Financial Officer
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 127
EP  - 136
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.020
DO  - 10.2991/aebmr.k.211124.020
ID  - Goeinawan2021
ER  -