The role of profit management in mediation of financial performance and transparency towards profit distribution management in sharia commercial banks

Abstract

This study aims to examine the effect of financial performance and transparency on profit distribution management with earnings management as a mediating variable in Islamic commercial banks in Indonesia. The population in this study were all Islamic Commercial Banks for 2014 - 2019, with as many as 14 Islamic commercial banks. Determination of the sample using the criteria to obtain 10 Islamic Commercial Banks. The data used is secondary data, in the form of financial statements of Islamic Commercial Banks, with data collection techniques in documentation. The analytical method used is the Structural Equation Model – Partial Least Square (SEM-PLS) method. The study results indicate that Financial Performance, Transparency affects Earnings Management Financial performance affects Profit Distribution Management, while transparency does not affect Profit Distribution Management. Profit management can mediate financial performance and transparency of Profit Distribution Management.

Keywords: {'name': 'Earnings Management'}, {'name': 'Financial Performance'}, {'name': 'Transparancy'}, {'name': 'Profit Distribution Management'}

Authors & affiliations

Mismiwati Mismiwati
Affiliation not supplied

Haryadi Haryadi
Affiliation not supplied

Enggar Diah Puspa Arum
Affiliation not supplied

Tona Auora Lubis
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

Achmad, T., & Kusumo, W. K. (2003). Financial Ratio Analysis as an Indicator in Protecting Potential Problems in Banking Conditions in Indonesia. Media Ekonomi dan Bisnis, 15(1).

Africano, F. (2020). Ekonometrics: Theory and Application with SPSS. Rafah Press

DOI: 10.1166/asl.2017.9324

DOI: 10.1016/S0165-4101(99)00017-8

Akbar, D. A., & Africano, F. (2017). Financial Management Principles. Books, 2, 185-187.

DOI: 10.31332/lifalah.v2i2.653

DOI: 10.1080/09720502.2014.932124

DOI: 10.1057/jbr.2008.27

Astari, Ni Ketut, Riska, & Suputra, L.D.G, Dharma. (2019). The Effect of Firm Size, Managerial Ownership, And Financial Performance On Earnings Management. E-Journal Akuntansi Universitas Udayana, 26(3), 1938- 1968

Astari, A. A. M. R., & Suryanawa, I. K. (2017). Factors affecting earnings management. E-Jurnal Akuntansi Universitas Udayana, 20(1), 290-319.

DOI: 10.22164/isea.v5i2.61

DOI: 10.1016/j.aos.2015.03.004

Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. Accounting review, 193-225.

DOI: 10.1016/j.accfor.2004.04.007

Desiana, L., & Africano, F. (2018). Financial Statement Analysis (Theory and Material Understanding). Palembang: Noer Fikri.

Doni, R., & Africano, F. (2017). The Effect of Profit Sharing Financing, Transparency and Performance on Profit Distribution Management (Study on Islamic Commercial Banks in Indonesia for the Period 2012-2016).

DOI: 10.1016/j.qref.2012.04.007

DOI: 10.2139/ssrn.1813483

Ghozali, I., & Latan, H. (2015). Partial least squares concepts, techniques and applications using the smartpls 3.0 program for empirical research. Semarang: Badan Penerbit UNDIP.

Hadjoh, R. A., & Sukartha, I. M. (2013). Effect of firm size, financial performance and media exposure on environmental information disclosure. E-Jurnal Akuntansi, 4(1), 1-17.

Hameed, Shalul. et al. (2004). Alternative Disclosure and Performance Measures for Islamic Banks, International Islamic University Malaysia

Herdinigtyas, W., & Almilia, L. S. (2006). CAMEL ratio analysis on the prediction of problematic conditions in banking institutions for the period 2000-2002. Jurnal Akuntansi dan keuangan, 7(2), pp-131.

Permatasari, R., & Adityawarman, A. (2015). The Effect of Transparency and Performance on Profit Distribution: An Empirical Study of Islamic Commercial Banks in Indonesia for the Period 2010-2013. Diponegoro Journal of Accounting, 4(2), 975-987.

Permatasari, I., & Nuswantara, D. A. (2012). Information Content Analysis On New Regulation Of Commercial Banks’ Health: A Study On Indonesian Case. In International Conference On Management,(online),(www. internationalconference. com. my, diakses 20 Mei 2013).

Ismail, A. G., & Lay, A. T. B. (2002). Bank loan portfolio composition and the disclosure of loan loss provisions: empirical evidence from Malaysian banks. Asian Review of Accounting.

DOI: 10.1002/9781118390474

DOI: 10.1016/0304-405X(76)90026-X

Jumingan. (2006). Financial Statement Analysis. Jakarta: PT. Bumi Aksara

Kaen, F. (2003). A blueprint for Corporate Governance: Strategy, accountability, and the preservation of shareholder value. Amacom.

Karim, A. A. (2004). Islamic Bank Fiqh and Financial Analysis. Jakarta: PT. King Grafindo Persada. cet, 3, 260-271.

Karim, A. A., & Affif, A. Z. (2005). Islamic banking consumer behaviour in Indonesia: a qualitative approach. International Journal Islamic Finance, 5(1), 1-18.

Kasmir. (2013). Banks and Other Financial Institutions. Jakarta: PT Raja Grafindo Persada

KK SAP, (2005). Government Accounting Standards. http://fafaahmad.wordpress.com/2008/03/06/standar-akuntansipemerintahan/[13 maret 2014]

DOI: 10.1016/j.jacceco.2004.11.002

DOI: 10.1108/IMEFM-06-2012-0047

Mangkunegara, A.P. ( 2005). Evaluation of Human Resources Performance. Refika Aditama.

Mardiasmo. (2003). Taxation. Revised Edition. Yogyakarta: Andi.

DOI: 10.1007/BF02752709

Misman, F. N., & Ahmad, W. (2011). Loan loss provisions: evidence from Malaysian Islamic and conventional banks. International Review of Business Research Papers, 7(4), 94-103.

Muchlis (2011). Saving Behavior in Islamic Banking in Central Java. Dipenogoro University.

Muhammad (2005). Sharia Financing Management. UPP AMP YKPN.

Muhammad. (2014). Islamic Bank Fund Management. Jakarta : Rajawali Pers.

Mulyo, G. P., & Siti, M. (2012). Factors that affect Profit Distribution Management on deposits of depositors at Islamic banks in Indonesia for the period 2008-2011 (Doctoral dissertation, Fakultas Ekonomika dan Bisnis).

Muniruddin, S. (2017). Analysis of Factors Affecting Profit Distribution Management in Islamic Commercial Banks in 2012-2015 (Doctoral dissertation, Syiah Kuala University).

Noor, N. S. M., & Sulong, Z. (2013). An Empirical Analysis of Profit Distribution Management Decisions in Malasyian Islamic Banks. In Proceeding of 2ndInternational Management Conference.

DOI: 10.36448/jak.v8i1.827

Riahi-Belkaoui, A. (2006). Accounting Theory. Penerbit salemba empat.

Shaw, John C. (2003). Wiley Finance Corporate Governance and Risk: A Systems Approach.

Sucipto. (2003. Financial Performance Assessment. Jurnal Akuntansi. Universitas Sumatra Utara. Medan.

Sugiyono. (2014). Educational Research Methods Quantitative, Qualitative, and R&D Approaches. Bandung: Alfabeta.

Sundararajan, V. (2005). Risk Measurement and Disclosure in Islamic Finance and the Implications of Profit-Sharing Investment Accounts. Proceedings of the 6th International Conference on Islamic Economics and Finance 1: 113–44.

DOI: 10.1108/17590811011086714

Yaya, R., Martawireja, A. E., & Abdurahim, A. (2009). Islamic Banking Accounting: Contemporary Theory and Practice. Penerbit salemba empat.

DOI: 10.2308/accr-10196

DOI: 10.1108/03074350710753771