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Abstract

This study aims to define and analyze the relationship between financial distress, cash holding, and profitability and earnings management with internal control as a moderating variable in relation to six major countries in Southeast Asia (Indonesia, Malaysia, Singapore, Thailand, Philippines, and Vietnam). Earnings management is measured by the Jones model of discretionary accruals. Secondary data sources are used, namely companies listed on the S&P Capital IQ, with 480 observations that fit the criteria. Purposive sampling techniques are employed, with a new sample of observational data from the consumer staples sectors in the six countries covering the period 2016-2020. ASEAN was chosen because of the lack of previous research using this as the research population. The data were processed using the Eviews 11 program. The theoretical basis used in the research is agency theory and signaling theory. The results indicate that financial distress and profitability positively affect earnings management, whereas cash holdings have a negative impact. The study also verifies that internal control as a moderating variable strengthens the negative impact of financial distress and profitability on earnings management, while strengthening the positive impact of cash holdings.

Bahasa Abstract

Penelitian ini memiliki tujuan untuk menguji dan menganalisis hubungan antara financial distress, cash holding, dan profitabilitas terhadap manajemen laba dengan internal control sebagai variabel moderasi untuk enam negara di Asia Tenggara yaitu Indonesia, Malaysia, Filipina, Singapura, Thailand dan Vietnam. Manajemen laba menggunakan proksi Discretionary Accruals (Model Jones). Sumber data penelitian ini menggunakan data sekunder dari perusahaan yang tersedia di S&P Capital IQ dengan total 480 observasi yang telah sesuai kriteria yang digunakan dengan menggunakan teknik purposive sampling dari perusahaan industri consumer staples untuk negara Asia Tenggara, yaitu Indonesia, Malaysia Filipina, Singapura, Thailand dan Vietnam periode 2016 – 2020. Data diolah menggunakan Eviews 11. Dasar teori yang digunakan dalam penelitian ini adalah teori keagenan dan teori sinyal. Penelitian ini mendapatkan hasil bahwa financial distress dan profitabilitas memiliki pengaruh positif terhadap manajemen laba, sedangkan cash holding memiliki pengaruh negatif terhadap manajemen laba. Penelitian ini menunjukkan bahwa internal control sebagai variabel moderasi memperkuat pengaruh negatif, financial distress dan profitabilitas terhadap manajemen laba. Sedangkan, internal control sebagai variabel moderasi memperkuat pengaruh positif cash holding terhadap manajemen laba.

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