ASSOCIATION OF OVERCONFIDENCE MANAGEMENT WITH EARNINGS MANAGEMENT: MODERATION OF AUDIT COMMITTEE EFFECTIVENESS
This study aims to obtain information and empirical evidence about the association of managerial overconfidence on earnings management and the effect of moderating the effectiveness of the audit committee. This study uses 1938 observations of companies listed on the Indonesian stock exchange for six periods from 2013 to 2018. The analysis technique used in this study is a moderated regression analysis using SPSS 25 software. This study finds that managerial overconfidence has a significant positive association. on earnings management, this is due to managerial overconfidence who feels he is better than other parties so that they ignore the realistic evaluation, when an investment project is not as estimated, they will perform earnings management to cover their miscalculations. Furthermore, the audit committee was unable to reduce the positive association of managerial overconfidence on earnings management, from the research data it was found that the company only met a few criteria for the effectiveness of the audit committee.
Keywords: Managerial, Overconfidence, Earnings Management, Good Corporate Governance, Audit Committee
Authors whose manuscript is published will approve the following provisions:
- The right to publication of all journal material published on the JEA17: Jurnal Ekonomi Akuntansi website is held by the editorial board with the author's knowledge (moral rights remain the property of the author).
- The formal legal provisions for access to digital articles of this electronic journal are subject to the terms of the Creative Commons Attribution-ShareAlike (CC BY-SA) license, which means JEA17: Jurnal Ekonomi Akuntansi reserves the right to store, modify the format, administer in the database, maintain and publish articles without requesting permission from the Author as long as it keeps the Author's name as the owner of Copyright.
- Printed and electronically published manuscripts are open access for educational, research, and library purposes. In addition to these objectives, the editorial board shall not be liable for violations of copyright law.