How media visibility affects earnings management: the moderating effects of public ownership

Gunawan, Jovita Mannuela and Rudiawarni, Felizia Arni and Sulistiawan, Dedhy and Kicia, Mariusz (2025) How media visibility affects earnings management: the moderating effects of public ownership. International Journal of Social Economics. pp. 1-15. ISSN 0306-8293; e-ISSN 1758-6712

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Abstract

Purpose – This research examines the relationship between media visibility and earnings management with the moderating effect of public ownership in Indonesia. Previous studies documented that media visibility acts as a watchdog and vice versa, as the media puts pressure on managers to manage earnings. This paper fills the gap by considering public ownership in the framework. Design/methodology/approach – This research employs a sample of 1,285 firm-year observations from nonfinancial listed companies in Indonesia from 2019 to 2021. Earnings management is calculated using the Kasznik Model, and media visibility is measured using Google News for each year. We examine each firm’s financial report to get public ownership data. We also run additional tests by examining earnings management using the Kothari Model, real earnings management and analyzing samples based on the different profit levels. Findings – Our research finds that media visibility influences real earnings management. The relationship between media visibility and earnings management can be attributed to public ownership. In addition, our research revealed that the influence of public ownership on media visibility and earnings management varies across degrees of profitability. Originality/value – This research contributes to media visibility and earnings management literature by focusing on public ownership. Furthermore, the relationship between media visibility, public ownership and earnings management is examined by categorizing the sample according to the firm’s profitability.

Item Type:	Article
Uncontrolled Keywords:	Earnings management, Media visibility, Public ownership, Indonesia
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	Felizia Arni Rudiawarni 31129
Date Deposited:	14 Apr 2025 04:19
Last Modified:	14 Apr 2025 04:19
URI:	http://repository.ubaya.ac.id/id/eprint/48321

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