Apakah Kompensasi Eksekutif Bank dapat Mempengaruhi Manajemen Laba ?

Zul Azmi, Riyadi Aprayuda



The purpose of this study is to see how the role of compensation given to executives in earnings management in Indonesian banking. Specifically, this study empirically examines executive compensation against the level of bank discretionary accruals. This study uses panel data from bank companies whose shares are listed on the Indonesia Stock Exchange for 5 years (2015-2019) involving 30 banks consisting of 150 observations. Data were analyzed using panel data regression with a random effect model. The results showed that compensation has a positive effect on discretionary accruals. This finding underline that the provision of compensation has not succeeded in aligning conflicts of interest as agency cost in Indonesian banking. As a practical contribution, this research can be used as a basis for banking decision making regarding the treatment of compensation for CEOs or directors, especially for banks.

Keywords: Agency cost; Banking; Earnings management; Excecutives compensation.


Tujuan penelitian ini untuk melihat bagaimana peran kompensasi yang diberikan kepada eksekutif terhadap manajemen laba di perbankan Indonesia. Secara khusus, penelitian ini menguji secara empiris kompensasi eksekutif terhadap tingkat akrual diskresioner bank. Penelitian ini mengunakan data panel dari perusahaan bank yang sahamnya terdaftar di Bursa Efek Indonesia selama 5 tahun (2015-2019) melibatkan 30 bank terdiri dari 150 pengamatan. Data dianalisis mengunakan regresi data panel dengan random effect model. Hasil penelitian menunjukkan bahwa kompensasi berpengaruh positif terhadap akrual diskresioner. Temuan ini menggaris bawahi bahwa pemberian kompensasi tidak berhasil menjadi penyelarasan konflik kepentingan sebagai biaya agensi di perbankan Indonesia. Sebagai kontribusi praktis penelitian ini dapat digunakan sebagai dasar pengambilan keputusan perbankan terkait perlakuan pemberian kompensasi pada CEO atau dewan direksi terutama di perusahaan perbankan.

Katakunci: Biaya agensi; Kompensasi eksekutif; Manajemen laba; Perbankan.


Ajina, A., Lakhal, F., & Ayed, S. (2019). Does Corporate Social Responsibility Reduce Earnings Management? The Moderating Role of Corporate Governance and Ownership. Management International, 23(2), 4555. https://doi.org/10.7202/1060030ar

Alhadab, M., & Al-Own, B. (2019). Earnings management and equity incentives: evidence from the European banking industry. International Journal of Accounting & Information Management, 27(2), 44261. https://doi.org/10.2308/accr.2005.80.2.441

Aprayuda, R., & Misra, F. (2020). Faktor Yang Mempengaruhi Keinginan Investasi Investor Muda di Pasar Modal Indonesia. E-Jurnal Akuntansi, 30(5), 10841098.

Aprayuda, R., Misra, F., & Kartika, R. (2021). Does Order of Information Affect Investors Investment Decisions?: Experimental Investigation. Journal of Accounting and Investment, 22(1). https://doi.org/https://doi.org/10.18196/jai.v22i1.9965

Arita, S., Aprayuda, R., Putra, D. G., & Syofyan, R. (2021). Earnings Management Practices From Perspective a Law and Ethical Views. Proceedings of the Sixth Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2020) Earnings, 179(Piceeba 2020), 307313.

Armstrong, C. S., Blouin, J. L., & Larcker, D. F. (2012). The incentives for tax planning. Journal of Accounting and Economics, 53(12), 391411. https://doi.org/10.1016/j.jacceco.2011.04.001

Assenso-Okofo, O., Ali, J., & Ahmed, K. (2020). The effects of global financial crisis on the relationship between CEO compensation and earnings management. International Journal of Accounting and Information Management, 28(2), 389408. https://doi.org/10.1108/IJAIM-08-2019-0101

Bae, S. M., Masud, M. A. K., & Kim, J. D. (2018). A cross-country investigation of corporate governance and corporate sustainability disclosure: A signaling theory perspective. Sustainability (Switzerland), 10(8), 2611. https://doi.org/10.3390/su10082611

Bajra, U., & Cadez, S. (2018). The Impact of Corporate Governance Quality on Earnings Management: Evidence from European Companies Cross-listed in the US. Australian Accounting Review, 28(2), 152166. https://doi.org/10.1111/auar.12176

Banghj, J., Gabrielsen, G., & Petersen, C. (2010). Determinants of executive compensation in privately held firms. Accounting & Finance, 50(3), 481510.

Bar-Gill, O., & Bebchuk, L. A. (2002). Misreporting Corporate Performance (Discussion Paper No. 400.).

Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511529. https://doi.org/10.1016/j.jfineco.2004.10.011

Bosse, D. A., & Phillips, R. A. (2016). Agency Theory and Bounded Self-Interest. Academy of Management Review, 41(2), 276297. http://dx.doi.org/10.1016/j.jfineco.2015.12.003%0Ahttp://search.ebscohost.com/login.aspxdirect=true&db=aph&%2338;AN=4369846&%2338;site=ehost-live

Chang, H. Y., Liang, L. H., & Yu, H. F. (2019). Market power, competition and earnings management: accrual-based activities. Journal of Financial Economic Policy, 11(3), 368384. https://doi.org/10.1108/JFEP-08-2018-0108

Chang, Y. K., Oh, W. Y., Park, J. H., & Jang, M. G. (2017). Exploring the Relationship Between Board Characteristics and CSR: Empirical Evidence from Korea. Journal of Business Ethics, 140(2), 225242. https://doi.org/10.1007/s10551-015-2651-z

Collins, D. W., Pungaliya, R. S., & Vijh, A. M. (2017). The effects of firm growth and model specification choices on tests of earnings management in quarterly settings. Accounting Review, 92(2), 69100. https://doi.org/10.2308/accr-51551

Conyon, M. J. (2006). Executive Compensation and Incentives. Academy of Management Perspectives, 20(1), 2544. https://doi.org/10.1016/B978-0-444-53265-7.50009-3

Cornett, M. M., McNutt, J. J., & Tehranian, H. (2009). Corporate governance and earnings management at large U.S. bank holding companies. Journal of Corporate Finance, 15(4), 412430. https://doi.org/10.1016/j.jcorpfin.2009.04.003

Crocker, K. J., & Slemrod, J. (2007). The economics of earnings manipulation and managerial compensation. RAND Journal of Economics, 38(3), 698713. https://doi.org/10.1111/j.0741-6261.2007.00107.x

Damayanti, D. L., & Priyadi, M. P. (2016). Pengaruh Karakteristik Perusahaan Pada Luas Pengungkapan Sukarela Dan Implikasinya Terhadap Asimetri Informasi. Jurnal Ilmu Dan Riset Akuntansi :, 5(2), 117.

Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research, 13(1), 136. https://doi.org/10.1111/j.1911-3846.1996.tb00489.x

Elsayed, N., & Hany Elbardan. (2018). Investigating the associations between executive compensation and firm performance. Journal of Applied Accounting Research, 19(2), 245270. https://doi.org/https://doi.org/10.1108/JAAR-03-2015-0027

Farichah, F. (2017). Management compensation and auditor reputation on earnings management and on share returns. European Research Studies Journal, 20(3), 196208. https://doi.org/10.35808/ersj/704

Fernandes, A. P., Ferreira, P., & Winters, L. A. (2018). The effect of competition on executive compensation and incentives: Evidence from a quasi-natural experiment. Journal of Human Resources, 53(3), 783824. https://doi.org/10.3368/jhr.53.3.0215-6963R1

Gao, P., & Shrieves, R. E. (2002). Earnings Management and Executive Compensation: A Case of Overdose of Option and Underdose of Salary? In SSRN Electronic Journal (University). https://doi.org/10.2139/ssrn.302843

Gerhart, B., & Bretz Jr, R. D. (1994). Employee Compensation. New York.

Gitman, L. J., & Zutter, C. J. (2012). Principle of Management Finance (13 The Add).

Goldman, E., & Slezak, S. L. (2006). An equilibrium model of incentive contracts in the presence of information manipulation. Journal of Financial Economics, 80(3), 603626. https://doi.org/10.1016/j.jfineco.2005.05.007

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (Internatio). Mc Graw-Hill.

Hamdi, F. M., & Zarai, M. A. (2012). Earnings Management to Avoid Earnings Decreases and Losses : Empirical Evidence from Islamic Banking Industry. Research Journal of Finance and Accounting, 3(3), 88107.

Healy, P. M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7(13), 85107. https://doi.org/10.1016/0165-4101(85)90029-1

Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature and Its. Accounting Horizons, 13(4), pp.365-383.http://www.aaajournals.org/doi/abs/10.2308/acch.1999.13.4.365

Hermuningsih, S. (2014). Profitability, Growth Opportunity, Capital Structure and the Firm Value. Buletin Ekonomi Moneter Dan Perbankan, 16(2), 115136. https://doi.org/10.21098/bemp.v16i2.440

Heykal, M., Siagian, P., & Iswandi. (2014). Impact Analysis of Indonesian Financial Accounting Standard based on the IFRS Implementation for Financial Instruments in the Indonesian Commercial Bank. Procedia - Social and Behavioral Sciences, 109, 12471250. https://doi.org/10.1016/j.sbspro.2013.12.620

Houmes, R. E., & Skantz, T. R. (2010). Highly valued equity and discretionary accruals. Journal of Business Finance and Accounting, 37(12), 6092. https://doi.org/10.1111/j.1468-5957.2009.02179.x

Husni, T., Rahim, R., & Aprayuda, R. (2020). Cash Compensation, Corporate Governance, Ownership, and Dividend Policy on Banking Performance. Proceedings of the 6th Annual International Conference on Management Research (AICMaR 2019). https://doi.org/10.2991/aebmr.k.200331.046

Jensen, M. C., & Murphy, K. J. (1990). CEO incentives-its not how much you pay, but how. Harvard Business Review, 68(3), 138149. https://doi.org/10.1111/j.1745-6622.2010.00262.x

Jensen, Michael C, & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency and Ownership Structure. Journal of Financial Economics, 3(4), 305360. https://doi.org/10.1016/0304-405X(76)90026-X

Jiwandono, L. Y., & Rahmawati, R. (2015). TOTAL KOMPENSASI EKSEKUTIF DAN MANAJEMEN LABA RIIL (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI tahun 2010-2013). Jurnal Akuntansi Dan Bisnis, 15(1), 23. https://doi.org/10.20961/jab.v15i1.173

John, K., & Qian, Y. (2005). Incentive features in CEO compensation in the banking industry. Economic Policy Review, 9(1), 109121.

Kasum, A. S., & Etudaiye-Muthar, O. F. (2014). Corporate Governance Breach: An Overview of the Owner-Manager Agency Problem in the Nigerian Banking Industry. In In Corporate GovernanceSpringer, Berlin, Heidelberg. (pp. 187196). https://doi.org/10.1007/978-3-642-45167-6

Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy. Journal of Business Ethics, 114(2), 207223. https://doi.org/10.1007/s10551-012-1336-0

Kim, H. J., & Yoon, S. S. (2008). The impact of corporate governance on earnings management in Korea. Malaysian Accounting Review, 7(1), 4359.

Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375400. https://doi.org/10.1016/S0165-4101(02)00059-9

Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163197. https://doi.org/10.1016/j.jacceco.2004.11.002

Laksmana, I., & Yang, Y. (2015). Product market competition and corporate investment decisions. In Review of Accounting and Finance (Vol. 14, Issue 2). https://doi.org/http://dx.doi.org/10.1108/RAF-11-2013-0123

Lee, M., & Hwang, I. T. (2019). The effect of the compensation system on earnings management and sustainability: Evidence from Korea banks. Sustainability (Switzerland), 11(11), 124. https://doi.org/10.3390/su11113165

Lobo, G. J., & Zhou, J. (2006). Increase after the Sarbanes-Oxley Act ? Accounting Horizons, 20(1), 5773.

Lublin. (2006). Boards Tie CEO Pay More Tightly to Performance; Options Grants May Depend On Meeting Financial Goals; Moving Beyond a Pulse. Wall Street Journal, Eastern Edition, New York, N.Y A.1.

Macey, J. R., & OHara, M. (2003). The corporate governance of banks. Economic Policy Review, 9(1), 91107. https://doi.org/10.1108/13581980610711144

Merchant, K. A., & State, W. A. Van der. (2007). Management Control Systems: Performance Measurement, Evaluation and Incentives (Prentice H).

Mishra, R. K., & Kapil, S. (2018). Effect of board characteristics on firm value: evidence from India. South Asian Journal of Business Studies, 7(1), 4172. https://doi.org/https://doi.org/10.1108/SAJBS-08-2016-0073

Moradi, M., Salehi, M., & Zamanirad, M. (2015). Analysis of incentive effects of managers bonuses on real activities manipulation relevant to future operating performance. Management Decision, 53(2), 432450. https://doi.org/10.1108/MD-04-2014-0172

Mostafa, W. (2017). The impact of earnings management on the value relevance of earnings: Empirical evidence from Egypt. Managerial Auditing Journal, 32(1), 5074. https://doi.org/10.1108/MAJ-01-2016-1304

Nachrowi, D., & Usman, H. (2006). Ekonometrika: Pendekatan Populer dan Praktis Untuk Analisis Ekonomi dan Keuangan. Lembaga penerbit Fakultas Ekonomi Universitas Indonesia.

Nugroho, R., & Rosidy, D. (2019). Pengaruh Komisaris Independen Dan Kompensasi Eksekutif Terhadap Agresivitas Pajak. Info Artha, 3(1), 5565. https://doi.org/10.31092/jia.v3i1.563

Oh, W. Y., Chang, Y. K., & Martynov, A. (2011). The Effect of Ownership Structure on Corporate Social Responsibility: Empirical Evidence from Korea. Journal of Business Ethics, 104(2), 283297. https://doi.org/10.1007/s10551-011-0912-z

Othman, H. Ben, & Mersni, H. (2014). The use of discretionary loan loss provisions by Islamic banks and conventional banks in the Middle East region: A comparative study. Studies in Economics and Finance, 31(1), 106128. https://doi.org/10.1108/SEF-02-2013-0017

Palia, D., & Porter, R. (2007). Agency theory in banking: An empirical analysis of moral hazard and the agency costs of equity. Banks and Bank Systems, 2(3), 142156.

Prihastomo, E. D., & Khafid, M. (2018). The Effect of Bonus Compensation and Leverage on Earnings Management with Financial Performance as Intervening Variable. Accounting Analysis Journal, 7(1), 5260. https://doi.org/10.15294/aaj.v7i1.18490

Pucheta-Martnez, M. C., & Gallego-lvarez, I. (2020). Corporate Environmental Disclosure Practices in Different National Contexts: The Influence of Cultural Dimensions. Organization & Environment, 33(4), 597623. https://doi.org/10.1177/1086026619860263

Quttainah, M. A., Song, L., & Wu, Q. (2013). Do islamic banks employ less earnings management? Journal of International Financial Management and Accounting, 24(3), 203233. https://doi.org/10.1111/jifm.12011

Sofyan, R., Putra, D. G., & Aprayuda, R. (2020). Does the Information on the Internet Media Respond to the Stock Market? Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020), 152, 510520. https://doi.org/10.2991/aebmr.k.201126.057

Song, W. L., & Wan, K. M. (2019). Does CEO compensation reflect managerial ability or managerial power? Evidence from the compensation of powerful CEOs. Journal of Corporate Finance, 56, 114. https://doi.org/10.1016/j.jcorpfin.2018.11.009

Sun, B. (2014). Executive compensation and earnings management under moral hazard. Journal of Economic Dynamics and Control, 41, 276290. https://doi.org/10.1016/j.jedc.2014.02.004

Syofyan, R., Putra, D. G., & Aprayuda, R. (2020). Influence of Company Value Information, Dividend Policy, and Capital Structure on Stock Price. SAR (Soedirman Accounting Review): Journal of Accounting and Business, 5(2), 152169.

Tahir, M., Ibrahim, S., & Nurullah, M. (2019). Getting compensation right - The choice of performance measures in CEO bonus contracts and earnings management. British Accounting Review, 51(2), 148169. https://doi.org/10.1016/j.bar.2018.09.004

Villiers, C. de, Naiker, V., & Staden, C. J. van. (2011). The effect of board characteristics on firm environmental performance. Journal of Management, 37(6), 16361663. https://doi.org/10.1177/0149206311411506

Watts, R. L., & Zimmerman, J. L. (1986). Positive Accounting Theory (Edgewood C). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=928677

Watts, R. L., Zimmerman, J. L., & Ross Watts, S. L. (1978). Towards a Positive Theory of the Determination of Accounting Standards Towards a Positive Theory of the Determination of Accounting. Source: The Accounting Review THE ACCOUNTING REVIEW, 53(I), 112134. http://www.jstor.org/stable/245729%0Ahttp://about.jstor.org/terms

Waweru, N. M., & Prot, N. P. (2018). Corporate governance compliance and accrual earnings management in eastern Africa: Evidence from Kenya and Tanzania. Managerial Auditing Journal, 33(2), 171191. https://doi.org/10.1108/MAJ-09-2016-1438

DOI: http://dx.doi.org/10.33603/jka.v5i2.4871


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Lt. 2 Gedung Universitas Swadaya Gunung Jati Jalan Pemuda No.32, Sunyaragi, Kesambi, Kota Cirebon, Jawa Barat 45132