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Abstract

This study aims to examine whether Indonesian banks perform earnings and capital management through loan loss provisions and whether IFRS 9 implementation improves accounting quality by focussing on those practices. The analysis is conducted with a sample of 28 banks in Indonesia selected from the Indonesian Stock Exchange from 2012 – 2021. This study adopts a model modified from previous studies (Ahmed et al. 1999; Anandarajan et al. 2003; Anandarajan et al. 2006; Leventis et al. 2011). Using the model, this study finds that Indonesian banks perform earnings management but do not perform capital management through loan loss provisions. Although IFRS 9 implementation increases loan loss provisions, it does not affect earnings and capital management practices.

Bahasa Abstract

Studi ini bertujuan untuk mengetahui apakah bank-bank di Indonesia melakukan manajemen laba dan kapital melalui cadangan piutang tak tertagih dan apakah implementasi IFRS 9 dapat meningkatkan kualitas akuntansi yang berfokus pada praktik akuntansi tersebut. Analisis dilakukan dengan menggunakan sampel dari 28 bank di Indonesia yang terdaftar di Bursa Efek Indoenesia pada tahun 2012 – 2021. Studi ini mengadopsi model yang dimodifikasi dari studi-studi sebelumnya (Ahmed et al. 1999; Anandarajan et al. 2003; Anandarajan et al. 2006; Leventis et al. 2011). Dengan menggunakan model tersebut, hasil yang didapatkan adalah bank-bank di Indonesia melakukan manajemen pendapatan tetapi tidak melakukan manajemen kapital melalui cadangan piutang tak tertagih. Setelah implementasi IFRS 9, cadangan penghapusan piutang tak tertagih pada bank-bank di Indonesia mengalami kenaikan, tetapi kenaikan tersebut tidak mengubah praktik manajemen laba dan kapital.

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