Title: The impact of bonus schemes and Machiavellianism in earnings management intentions

Authors: Anna Purwaningsih; Sang Ayu Putu Piastini Gunaasih; Maria Goreti Fitria Harjanti

Addresses: Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Yogyakarta, 55281, Indonesia ' Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Yogyakarta, 55281, Indonesia ' Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Yogyakarta, 55281, Indonesia

Abstract: This study investigates the association of bonus schemes and Machiavellianism upon managers' intentions for earnings management. The research is crucially important because earnings management practices can mislead the users of financial statements in their decision-making processes. The research is an experimental research, with a 2 × 2 design between subjects. The participants in this research are 180 undergraduate students from the Accounting Department at UAJY. The result of this research is that a bonus scheme and Machiavellianism have an effect upon a manager's intention to manage earnings. This result can stand as the basis for regulators to make regulations in the capital market.

Keywords: earnings management; bonus scheme; Machiavellianism; experimental research.

DOI: 10.1504/IJTGM.2019.101553

International Journal of Trade and Global Markets, 2019 Vol.12 No.3/4, pp.345 - 353

Received: 31 Oct 2018
Accepted: 15 Jan 2019
Published online: 12 Aug 2019 *

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