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Abstract:
This paper describes the result of empirical research examining the effect of CEO tenure and female representation in the board of directors on earnings management for firms listed in Indonesia Stock Exchange (IDX). Using a sample of 388 observations of publicly listed companies on the IDX for the fiscal year that ends on December 31, 2014 through 2016, this study finds that, in general, CEO tenure and female representation in the board of directors negatively affects earnings management. Yet, when analysis is decomposed for each industry, the result shows different findings for different industry. For CEO tenure, the results are consistent for five industries namely Mining, Basic industry and chemicals, Property, Real Estate and Building Construction, and Infrastructure, Utilities and Transportation, Trade, Services & Investment. For female representative, the results are consistent for five industries namely Basic industry and chemicals, Miscellaneous, Consumer Goods, Property, Real Estate and Building Construction, and Infrastructure, Utilities and Transportation. This study provides further evidence on the effect CEO tenure and gender in board directors on quality reporting on accounting information using data from Indonesia.
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