Determinants of Earnings Quality With the Company's Life Cycle, and Related Party Transactions and the Implications on Firm Value
DOI:
https://doi.org/10.38035/dijefa.v3i3.1353Keywords:
Earnings Quality, Firm Value, Company Life Cycle, Related Party TransactionsAbstract
This study aims to prove the empirical effect of the company's life cycle, and related party transactions on earnings quality and its implications toward firm value. This study uses a sample of the mining sector listed on the Indonesia Stock Exchange for the period 2015 – 2020. The sample in this study consisted of 12 companies. Sampling using purposive sampling method and is a quantitative research with panel data regression model.The results show that the company life cycle and related party transactions have a significant positive effect on earnings quality and a significant negative effect on firm value, earnings quality has a significant positive effect on firm value, earnings quality mediates between the firm's life cycle and firm value, and earnings quality does not mediate between related party transactions and firm value.
References
Chen, T. (2016). Internal Control, Life Cycle and Earnings Quality —An Empirical Analysis from Chinese Market. Open Journal of Business and Management, 04(02), 301–311.
Dang, H. N., Pham, C. D., Nguyen, T. X., & Nguyen, H. T. T. (2020). Effects of corporate governance and earning quality on listed vietnamese firm value. Journal of Asian Finance, Economics and Business, 7(4), 71–80. https://doi.org/10.13106/JAFEB.2020.VOL7.NO4.71
Eliakim Tambunan, M., Siregar, H., Haymans Manurung, A., & Priyarsono, D. S. (2017). Related Party Transactions and Firm Value in the Business Groups in the Indonesia Stock Exchange. Journal of Applied Finance & Banking, 7(3), 1792–6599.
Hasnan, S., Daie, M. S., & Hussain, A. R. M. (2016). Related party transactions and earnings quality: Does Corporate Governance Matter. International Journal of Economics and Management, 10(2), 189–219.
Ikatan Akuntan Indonesia. 2017. PSAK 7 Pengungkapan Pihak-pihak Berelasi. Retrieved Juni 29, 2022, from http://iaiglobal.or.id/v03/st andar-akuntansi keuangan/pernyataan-sak-12- psak-7-pengungkapan pihak-pihak berelasi.
Jensen, M. C. (1976). Reflections on the State of Accounting Research and the Regulation of Accounting. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.321522
Jonathan, J., & Machdar, N. M. (2018). Pengaruh Kualitas Laba Terhadap Nilai Perusahaan Dengan Reaksi Pasar Sebagai Variabel Intervening. Jurnal Riset Manajemen Dan Bisnis (JRMB) Fakultas Ekonomi UNIAT, 3(1), 67–76. https://doi.org/10.36226/jrmb.v3i1.87
Miller, D., Friesen, P. H., & Mintzberg, H. (1984). Organizations : a quantum view. 320.
Moataz El-Helaly. (2018). Related-party transactions: a review of the regulation, governance and auditing literature. Managerial Auditing Journal, 33 Lit rev(8/9), 779–806.
Mohammed, L. I., & Abibakar, N. (2020). Related Party Transactions, Off Balance Sheet Items and Earnings Quality of Listed Deposit Money Banks in Nigeria. Malaysian Management Journal. https://doi.org/10.32890/MMJ.22.2018.9669
Moshtagh, F., Reza, M., & Vadiei, M. H. (2014). An Investigation of the Effect of Firm’s Life Cycle Stages on Earning Quality: Evidence from Iran. Asian Journal of Research in Banking and Finance, 4(8), 109–122. http://www.ijcrb.com/archives.htm
Myers, P. G., Haines, K., & Rohling, E. J. (1998). Modeling the paleocirculation of the Mediterranean: The last glacial maximum and the Holocene with emphasis on the formation of sapropel S1. Paleoceanography, 13(6), 586–606. https://doi.org/10.1029/98PA02736
Nagar, N., & Radhakrishnan, S. (2017). Firm Life Cycle and Real-Activity Based Earnings Management. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.2701680
Nugraha, F. A., & Setiany, E. (2020). Influence of Manager Ownership, Manager Quality and Conservatism on Earnings Quality: Evidence from Indonesian Banking Sector. Scholars Bulletin, 06(03), 76–82. https://doi.org/10.36348/sb.2020.v06i03.004
Sarun, A. (2016). Corporate Governance , Earnings Quality and Firm Value : Evidence from Malaysia. … of Financial Accounting …. http://far.ui.ac.ir/article_20606.html?lang=en
Schroeder, R. G. (2004). Operations management : contemporary concepts and cases. 520.
Schroeder, R. G. (2013). Financial accounting theory and analysis: text and cases. 11th edition / Richard G. Schroeder; Myrtle W. Clark; Jack M. Cathey. John Wiley & Sons, Inc.
Sekaran, U., & Roger, B. (2017). Metode Penelitian untuk Bisnis: Pendekatan Pengembangan-Keahlian, Edisi 6 Buku 1 (6th ed.). Salemba Empat.
Utami, W., Surjandari, D., & Akbar, T. (2020). Corporate Governance and Earnings Quality: Students Perception in Indonesia. https://doi.org/10.4108/eai.26-3-2019.2290923
Yoo, J., Lee, S., & Park, S. (2019). The effect of firm life cycle on the relationship between R & D expenditures and future performance, earnings uncertainty, and sustainable growth. Sustainability (Switzerland), 11(8), 1–19. https://doi.org/10.3390/su11082371
Downloads
Published
Issue
Section
License
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).
