Title: The impact of corporate governance on secrecy and earnings management relationships

Authors: Anna Purwaningsih; Indra Wijaya Kusuma; Zuni Barokah; Ratna Nurhayati

Addresses: Faculty of Business and Economics, Accounting Department, Universitas Atma Jaya Yogyakarta, Jalan Babarsari 43, Yogyakarta, 55281, Indonesia ' Faculty of Economics and Business, Accounting Department, Universitas Gadjah Mada, Jalan Nusantara, Kampus UGM, Bulaksumur, Yogyakarta, 55281, Indonesia ' Faculty of Economics and Business, Accounting Department, Universitas Gadjah Mada, Jalan Nusantara, Kampus UGM, Bulaksumur, Yogyakarta, 55281, Indonesia ' Faculty of Economics and Business, Accounting Department, Universitas Gadjah Mada, Jalan Nusantara, Kampus UGM, Bulaksumur, Yogyakarta, 55281, Indonesia

Abstract: This study investigates the effect of secrecy on earnings management and examines the impact of corporate governance on the relationship between secrecy and earnings management. The research samples are eleven Asia Pacific countries from 2010 to 2019. The research data resources are the Bloomberg and Thomson Reuters databases. Hypothesis testing employs Multiple Linear Regression. The results provided empirical evidence that: 1) secrecy had a positive effect on accrual (real) earnings management; and (2) corporate governance strengthened the positive relationship between secrecy and accrual (real) earnings management practices. Therefore, these test results confirmed consistency-built hypotheses.

Keywords: corporate governance; secrecy; REM; real earnings management; AEM; accrual earnings management.

DOI: 10.1504/IJTGM.2024.145839

International Journal of Trade and Global Markets, 2024 Vol.20 No.3/4, pp.209 - 216

Received: 03 Jul 2023
Accepted: 30 Oct 2024
Published online: 29 Apr 2025 *

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