Title: THE EFFECT OF REAL EARNINGS MANAGEMENT ON EXECUTIVE REMUNERATION WITH ACCOUNTANT CFO AS A MODERATING VARIABLE

Authors: SARI RATIH NUR ISTIQOMAH

Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Universitas Airlangga

Abstract

This study aims to examine the effect of real earnings management on executive remuneration with CFO accountants as a moderating variable. This study uses a sample of companies from all sectors except financial sector companies listed on the Indonesia Stock Exchange for the period 2012-2017. The total sample in this study was 1,799 observations, with details: 270 observations in 2012, 302 observations in 2013, 308 observations in 2014, 302 observations in 2015, 301 observations in 2016, and 316 observations in 2017. The analysis techniques used in this study were multiple linear regression analysis and moderated regression with the STATA 12.0 program. The results show that real earnings management, when measured comprehensively, has a significant positive effect on executive remuneration. The results also show that each real earnings management method individually has a significant effect on executive remuneration. It is proven that CFO accountants can comprehensively moderate the influence of real earnings management, abnormal operating cash flow, and abnormal production costs on executive remuneration, while the influence of abnormal discretionary expenses on executive remuneration is not proven to be moderated by CFO accountants.

Keywords: Real Earnings Management, CFO Accountant, Executive Remuneration

Sources: http://repository.unair.ac.id/87345/