Highlighting Earning Management from Islam Perspective

Rediyanto Putra, Inneke Putri Widyani

Abstract


This study aims to assess the behaviour of earning management from an Islamic perspective. The form of this research is descriptive qualitative research using Islamic paradigm to make ethical judgments of earnings management actions. The analytical method used in this study is divided into two, namely descriptive and content analysis. This study concludes that basically the existing earning management in conventional accounting is not in accordance with Islamic values. Earning management is an act of dhazalim, contrary to the value of honesty (siddiq), contrary to itsar value, and contrary to kosher (halal thayyiban). This study also concluded that managers can create good performance with expected profit pattern based on professionalism value in accordance with Islamic shariah (akhlakul karimah) in order to be in accordance with Islamic sharia principles.

Keywords


Earning management; Islamic Values; Postmodern Critical

Full Text:

PDF

References


Al-Qur’an Al-Karim

Davis‐Friday, P., & Frecka, T. (2002), What Managers Should Know About Earnings Management — Its Prevalence, Legality, Ethicality, and Does It Work?, Review of Accounting and Finance, 1(1), 57-71. https://doi.org/10.1108/eb026979

De Angelo, L. (1986). Accounting Numbers as Market Valuation Substitutes: A Study of Management Buyouts of Public Stockholders. The Accounting Review, 61(3), 400–420.

Diamastuti, E. (2015). Paradigma Ilmu Pengetahuan Sebuah Telaah Kritis. Jurnal Akuntansi Universitas Jember, 10(1), 61-74. https://doi.org/10.19184/jauj.v10i1.1246

Diana, B., & Madalina, P. C. (2007). Is Creative Accounting a Form of Manipulation? Economic Science Series. Annals of the University of Oradea

Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1). 57-74. https://doi.org/10.5465/amr.1989.4279003

Hafni, D. A. (2012). Praktik Earning Management dalam Perspektif Etika Syari’ah. Ekonomika-Bisnis, (3)2, 99-110. https://doi.org/10.22219/jekobisnis.v3i2.2233

Healy, P., & Wahlen, J. (1999). A Review of Earnings Management Literature and Its Implications for Standard Setting. Accounting Horizons, 13(4), 365-383. https://doi.org/10.2308/acch.1999.13.4.365

Holthausen, R. W., Larke, K. M., Sloan, R. G. (1995). Annual Bonus Schemes and the Manipulation of Earnings. Journal of Accounting and Economics, 19(1), 29-74. https://doi.org/10.1016/0165-4101(94)00376-g

Ilmi, Z. (2012). Islam Sebagai Landasan Perkembangan llmu Pengetahuan Dan Teknologi. Jurnal Komunikasi Dan Sosial Keagamaan, XV(1), 96–106.

Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Cost, and Ownership Structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405x(76)90026-x

Kamel, H., & Elbanna, S. (2010). Assessing The Perceptions of The Quality of Reported Earnings in Egypt. Managerial Auditing Journal, 25(1), 45. https://doi.org/10.1108/02686901011007298

Marzuqi, A. Y., & Latif, A. B. (2010). Manajemen Laba Dalam Tinjauan Etika Bisnis Islam. Jurnal Dinamika Ekonomi & Bisnis, 7(1), 1-22

Muliasari, I., & Dianati, D. (2014). Manajemen Laba dalam Sudut Pandang Etika Bisnis Islam. .Jurnal Akuntansi dan Keuangan Islam, 2(2), 157-182. https://doi.org/10.35836/jakis.v2i2.47

Naim, A., & Hartono. (1996). The Effect of Antitrust Investigation on the Management of Earnings A Further Empirical Test of Political Cost Hypothesis. Kelola, 13(5), 126—141.

Norvadewi. (2014). Profesionalisme Bisnis dalam Islam. MAZAHIB, 13(2), 175-188.

Pourciau, S. (1993). Earning Management and Nonroutine Executive Changes. Journal Accounting and Economics, 16(1-3), 317—336. https://doi.org/10.1016/0165-4101(93)90015-8

Rahman, A. R., & Ali, F. H. M. (2006). Board, Audit Committee, Culture and Earnings Management: Malaysian Evidence. Managerial Auditing Journal 21(7), 783-804. https://doi.org/10.1108/02686900610680549

Rosner, R. L. (2003). Earnings Manipulation in Failing Firms. Contemporary Accounting Research, 20(2), 361-408. https://doi.org/10.1506/8evn-9krb-3ae4-ee81

Scott, W. R. (2015). Financial Accounting Theory Seventh Edition. Prentice-Hall

Subramanyam, K. (1996). The Pricing of Discretionary Accruals. Journal of Accounting and Economics, 22(2), 249-281. https://doi.org/10.1016/s0165-4101(96)00434-x

Syaiful, M. (2017). Management Laba (Earnings Management) dalam Tinjauan Etika Islam. Ekomadania, 1(1), 28-56.

Syawal, A. (2016). Sifat- Sifat Fasik dalam Al-Qur’an. Skripsi. Universitas Islam Negeri Alauddin Makassar

Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory. Prentice-Hall, Englewood Cliffs.

Zuhdi, R. (2007). Telaah Kritis atas Compensation Plan dalam Manajemen Laba (Perspektif Syari’ah). Jurnal Infestasi, 3(2), 90-127.




DOI: https://doi.org/10.18196/jai.2003127

Refbacks

  • There are currently no refbacks.




Office:
Certified Public Accountant (CPA) Test Centre Room
Gedung Ki Bagus Hadikusuma (E4) Lantai 2 Pojok Barat, Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia
Website: journal.umy.ac.id/index.php/ai - E-mail: jai@umy.ac.id
Phone: +62 274 387 656 (ext: 334)

Journal of Accounting and Investment is licensed under Creative Commons Attribution 4.0 International License.