An INTEGRATED MODEL TO EXPLAIN EARNINGS QUALITY: FINANCIAL PERFORMANCE AS A INTERVENING
Keywords:
Earnings Quality, Accounting Conservatism, Intellectual Capital, Financial Performance.
Abstract
This study aims to empirically determine the relationship between intellectual capital and accounting conservatism on earnings quality with financial performance as an intervening variable. This study uses data from manufacturing companies listed on the Indonesia Stock Exchange during 2018-2021. The sample was selected using a purposive sampling method to produce 35 companies. The analysis technique in this research is Multiple Linear Regression Analysis with a path analysis model. Based on the outcomes of the study shows that intellectual capital has an effect on financial performance, accounting conservatism has no effect on financial performance, intellectual capital has an effect on earnings quality, accounting conservatism has no effect on earnings quality, financial performance has an effect on earnings quality, financial performance is not able to mediate the influence of intellectual capital on earnings quality, financial performance is not able to mediate the effect of accounting conservatism on earnings quality.
References
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Amin, S., Usman, M., Sohail, N., & Aslam, S. (2018). Relationship between intellectual capital and financial performance: The moderating role of knowledge assets. Pakistan Journal of Commerce and Social Science, 12(2), 521–547.
Ani, M. K. Al, & Chong, H. G. (2021). Interplay Between Accounting Conservatism, Auditing Conservatism And Quality Of Earnings in Oman. International Journal of Economics, Management and Accounting (The International Islamic University Malaysia), 1(1), 167–205.
Ardilla, A., & Nuswantara, D. A. (2021). The Influences Of Corporate Governance And Intellectual Capital On Earning Quality In Indonesian Public Listed Companies. Review of Business, Accounting & Finance, 01(04), 328–342.
Arnas, Y., Lamtiar, S., Kurniawati, Z., Kurnianto, B., & Kalbuana, N. (2021). Factors Affecting Earning Management on Transportation Corporations in Indonesia. International Journal of Economics, Business, and Accounting Research (IJEBAR), 5(1), 150–159.
Faisal, F. (2019). Intellectual capital and financial performance of the company. Jurnal Reviu Akuntansi Dan Keuangan, 9(1), 13–23. https://doi.org/10.22219/jrak.v9i1.40
Gunawan, H. (2017). Impact of Intellectual Capital on Financial Perfomance. JOURNAL OF APPLIED MANAGERIAL ACCOUNTING, 1(1), 45–50. https://doi.org/10.30871/jama.v1i1.1239
Hasanuddin, R., Darman, D., Taufan, M. Y., Salim, A., Muslim, M., & Putra, A. H. K. P. (2021). The Effect of Firm Size , Debt , Current Ratio , and Investment Opportunity Set on Earnings Quality : An Empirical Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(6), 179–188. https://doi.org/10.13106/jafeb.2021.vol8.no6.0179
Kalbuana, N., Suryati, A., & Pertiwi, C. P. A. (2022). Effect Of Company Age, Audit Quality, Leverage And Profitability on Earnings Management. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 389–399.
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Mutuc, E. B. (2021). An Integrated Model to Explain How Intellectual Capital Affects Earnings Quality : Some Evidence from Asian Emerging Economies. Asia-Pacific Social Science Review, 21(2), 202–221.
Nawaz, T., & Ohlrogge, O. (2022). Clarifying the impact of corporate governance and intellectual capital on financial performance : A longitudinal study of Deutsche Bank ( 1957 – 2019 ). International Journal OfFinance & Economics Published, 1(1), 1–16. https://doi.org/10.1002/ijfe.2620
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Nizar, M., & Kiswanto. (2022). Analysis Of The Influence Of Accounting Conservatism, Company Size, Capital Structure, Liquidity And Profit Growth On Earnings Quality. Kajian Akuntansi, 23(1), 101–118.
Pratama, B. F., Hariyani, D. S., & Hasanah, K. (2022). Capital Structure, Liquidity, And Financial Performance on The Quality Of Earnings. Neo Journal of Economy and Social Humanities (NEJESH), 1(2), 119–127.
Pratiwi, W., & Pralita, T. (2021). The Influence of Corporate Governance Mechanism , Accounting Conservatism , And Company Size on Earnings Quality. Journal of Economics, Finance and Management Studies, 4(1), 26–34. https://doi.org/10.47191/jefms/v4-i1-04
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Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The influence of intellectual capital towards financial performance with brand value as an intervening variable. Quality - Access to Success, 20(168), 79–85.
Sardo, F., Serrasqueiro, Z., & Alves, H. (2018). On the relationship between intellectual capital and financial performance: A panel data analysis on SME hotels. FilipeSardobZéliaSerrasqueiroaHelenaAlvesa, 75, 67–74.
Shubita, M. F. (2021). Accounting Conservatism and Profitability of Commercial Banks : Evidence from Jordan. 8(6), 145–151. https://doi.org/10.13106/jafeb.2021.vol8.no6.0145
Sowaity, S. M. A. (2022). Does Intellectual Capital Efficiency Affect Earnings Quality ? Evidence for Jordanian Listed Companies. Open Journal of Accounting, 11, 80–109. https://doi.org/10.4236/ojacct.2022.112006
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Tahir, M., Shah, S. Q. A., Khan, M. M., & Afridi, M. A. (2021). Intellectual Capital and Financial Performance of Banks in Pakistan Intellectual Capital and Financial Performance of Banks in Pakistan. XIII(1), 105–118.
Xu, J., & Liu, F. (2021). Nexus Between Intellectual Capital And Financial Performance : An Investigation Of Chinese. Journal of Business Economics and Management, 22(1), 217–235.
Zadeh, F. N., Askarany, D., & Asl, S. A. (2022). Accounting Conservatism and Earnings Quality. Journal of Risk and Financial Management, 15, 413.
Amin, S., Usman, M., Sohail, N., & Aslam, S. (2018). Relationship between intellectual capital and financial performance: The moderating role of knowledge assets. Pakistan Journal of Commerce and Social Science, 12(2), 521–547.
Ani, M. K. Al, & Chong, H. G. (2021). Interplay Between Accounting Conservatism, Auditing Conservatism And Quality Of Earnings in Oman. International Journal of Economics, Management and Accounting (The International Islamic University Malaysia), 1(1), 167–205.
Ardilla, A., & Nuswantara, D. A. (2021). The Influences Of Corporate Governance And Intellectual Capital On Earning Quality In Indonesian Public Listed Companies. Review of Business, Accounting & Finance, 01(04), 328–342.
Arnas, Y., Lamtiar, S., Kurniawati, Z., Kurnianto, B., & Kalbuana, N. (2021). Factors Affecting Earning Management on Transportation Corporations in Indonesia. International Journal of Economics, Business, and Accounting Research (IJEBAR), 5(1), 150–159.
Faisal, F. (2019). Intellectual capital and financial performance of the company. Jurnal Reviu Akuntansi Dan Keuangan, 9(1), 13–23. https://doi.org/10.22219/jrak.v9i1.40
Gunawan, H. (2017). Impact of Intellectual Capital on Financial Perfomance. JOURNAL OF APPLIED MANAGERIAL ACCOUNTING, 1(1), 45–50. https://doi.org/10.30871/jama.v1i1.1239
Hasanuddin, R., Darman, D., Taufan, M. Y., Salim, A., Muslim, M., & Putra, A. H. K. P. (2021). The Effect of Firm Size , Debt , Current Ratio , and Investment Opportunity Set on Earnings Quality : An Empirical Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(6), 179–188. https://doi.org/10.13106/jafeb.2021.vol8.no6.0179
Kalbuana, N., Suryati, A., & Pertiwi, C. P. A. (2022). Effect Of Company Age, Audit Quality, Leverage And Profitability on Earnings Management. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(1), 389–399.
Krismiaji, & Sururi. (2021). Conservatism, Earnings Quality, and Stock Prices - Indonesian Evidence. Journal of Accounting and Investment, 22(1), 37–50. https://doi.org/10.18196/jai.v22i1.9419
Lestari, S. P., & Khafid, M. (2021). The Role of Company Size in Moderating the Effect of Profitability , Profit Growth , Leverage , and Liquidity on Earnings Quality. Accounting Analysis Journal, 10(2), 9–16. https://doi.org/10.15294/aaj.v10i2.45939
Magdalena, V., & Trisnawati, E. (2022). Pengaruh Profitabilitas, Likuiditas, Konservatisme Akuntansi, dan Modal Intelektual terhadap Kualitas Laba. Jurnal Ekonomi, Spesial Issue, 402–419. https://investor.id/
Mutuc, E. B. (2021). An Integrated Model to Explain How Intellectual Capital Affects Earnings Quality : Some Evidence from Asian Emerging Economies. Asia-Pacific Social Science Review, 21(2), 202–221.
Nawaz, T., & Ohlrogge, O. (2022). Clarifying the impact of corporate governance and intellectual capital on financial performance : A longitudinal study of Deutsche Bank ( 1957 – 2019 ). International Journal OfFinance & Economics Published, 1(1), 1–16. https://doi.org/10.1002/ijfe.2620
Nishanthini, A., & Arthika, R. (2021). The Impact of Intellectual Capital on Financial Performance: A Study of Sri Lankan Financial Institution. International Journal of Multidisciplinary Research and Analysis, 04(09), 1342–1348. https://doi.org/10.47191/ijmra/v4-i9-21
Nizar, M., & Kiswanto. (2022). Analysis Of The Influence Of Accounting Conservatism, Company Size, Capital Structure, Liquidity And Profit Growth On Earnings Quality. Kajian Akuntansi, 23(1), 101–118.
Pratama, B. F., Hariyani, D. S., & Hasanah, K. (2022). Capital Structure, Liquidity, And Financial Performance on The Quality Of Earnings. Neo Journal of Economy and Social Humanities (NEJESH), 1(2), 119–127.
Pratiwi, W., & Pralita, T. (2021). The Influence of Corporate Governance Mechanism , Accounting Conservatism , And Company Size on Earnings Quality. Journal of Economics, Finance and Management Studies, 4(1), 26–34. https://doi.org/10.47191/jefms/v4-i1-04
S, A., & Murwaningsari, E. (2018). 2018 Financial Performance Determination , Earnings Quality ,. South East Asia Journal of Comtemporary Business, Economics and Law, 15(5), 1–16.
Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The influence of intellectual capital towards financial performance with brand value as an intervening variable. Quality - Access to Success, 20(168), 79–85.
Sardo, F., Serrasqueiro, Z., & Alves, H. (2018). On the relationship between intellectual capital and financial performance: A panel data analysis on SME hotels. FilipeSardobZéliaSerrasqueiroaHelenaAlvesa, 75, 67–74.
Shubita, M. F. (2021). Accounting Conservatism and Profitability of Commercial Banks : Evidence from Jordan. 8(6), 145–151. https://doi.org/10.13106/jafeb.2021.vol8.no6.0145
Sowaity, S. M. A. (2022). Does Intellectual Capital Efficiency Affect Earnings Quality ? Evidence for Jordanian Listed Companies. Open Journal of Accounting, 11, 80–109. https://doi.org/10.4236/ojacct.2022.112006
Supriyatna, I. (2021). Manipulasi Laporan Keuangan, 2 Mantan Direksi AISA Dituntut 7 Tahun Penjara. Https://Www.Suara.Com/Bisnis/2021/06/04/132347/Manipulasi-Laporan-Keuangan-2-Mantan-Direksi-Aisa-Dituntut-7-Tahun-Penjara?Page=2.
Tahir, M., Shah, S. Q. A., Khan, M. M., & Afridi, M. A. (2021). Intellectual Capital and Financial Performance of Banks in Pakistan Intellectual Capital and Financial Performance of Banks in Pakistan. XIII(1), 105–118.
Xu, J., & Liu, F. (2021). Nexus Between Intellectual Capital And Financial Performance : An Investigation Of Chinese. Journal of Business Economics and Management, 22(1), 217–235.
Zadeh, F. N., Askarany, D., & Asl, S. A. (2022). Accounting Conservatism and Earnings Quality. Journal of Risk and Financial Management, 15, 413.
