THE EFFECT OF MANDATORY IFRS ADOPTION ON EARNING MANAGEMENT AND POLITICAL CONNECTIONS AS A MODERATION VARIABLE IN COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE

Title: THE EFFECT OF MANDATORY ADOPTION OF IFRS ON EARNING MANAGEMENT AND POLITICAL CONNECTIONS AS A MODERATION VARIABLE IN COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE

Authors: YOGI ARIS VARA WISNU WADHANA

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

Publisher: Universitas Airlangga

Abstract

This research aims to see the influence of the role of mandatory IFRS adoption on earnings management and to see the influence of political connections in influencing IFRS adoption on earnings management. The data used in this research comes from companies listed on the IDX in 2010-2015. The research uses a quantitative approach, using moderated regression and different tests to answer the research hypothesis. Discretionary accruals are used as a proxy for earnings management. To test the influence of political connections in strengthening IFRS adoption on earnings management, moderation regression is used as the model. The research results show that IFRS adoption in companies listed on the IDX has a significant effect on earnings management and the moderating variable of political connections has a significant effect in influencing IFRS adoption on earnings management. The results of different tests also show that there is no difference in earnings management after the adoption of Mandatory IFRS in 2012.

Keywords: IFRS adoption, earnings management, political connections, moderation

Sources: http://repository.unair.ac.id/80375/