Does Presidential Election Matters? Earnings Management Study In Indonesia

Tandianto, Hubert Sebastian and Rudiawarni, Felizia Arni (2024) Does Presidential Election Matters? Earnings Management Study In Indonesia. In: International Conference on Economics, Finance & Business, Vienna, 20 - 22 May 2024, University of Vienna, Vienna, Austria.

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Abstract

This study investigates the correlation between earnings management and presidential elections in Indonesia. Prior research has demonstrated that general elections have a detrimental effect on the practice of earnings management at State-Owned Enterprises (SOEs). The objective of this study is to examine the impact of presidential elections on the practice of earnings management in Indonesia, specifically focusing on SOEs. A study was carried out utilizing a sample of 63 Indonesian companies that are listed on the Indonesia Stock Exchange (IDX), out of which 21 are SOEs. The study spanned over a period of 5 years. It aimed to investigate the impact of presidential elections in the years leading up to the election, the election year itself, and the years after the election. Our empirical research shows that presidential elections harm the practice of real earnings management in both SOEs and non-SOEs. Additionally, we observe a significant increase in the prevalence of earnings management before the election period compared to the period following the election. The discovery indicates a substantial increase in pressure caused by political events, such as the presidential election. These findings provide a reference point for future studies and aid in anticipating earnings management practices during prospective political events, particularly presidential elections.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	ISBN 978-80-7668-010-4; ISSN 2336-6044
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	HUBERT SEBASTIAN TANDIANTO
Date Deposited:	04 Aug 2025 02:47
Last Modified:	04 Aug 2025 02:47
URI:	http://repository.ubaya.ac.id/id/eprint/49286

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