Fitri Takbirani, Nurzi Sebrina

Hubungan Financial Expert CEO dengan Earnings Management saat Perusahaan Melakukan Aksi Korporasi Initial Public Offerings: Studi Kasus Perusahaan Nonkeuangan yang IPO Tahun 2021-2023

Introduction

Hubungan financial expert ceo dengan earnings management saat perusahaan melakukan aksi korporasi initial public offerings: studi kasus perusahaan nonkeuangan yang ipo tahun 2021-2023. Telusuri dampak keahlian keuangan CEO terhadap manajemen laba pada perusahaan nonkeuangan yang IPO di Indonesia (2021-2023). Studi ini menemukan keahlian CEO tidak signifikan.

Abstract

This study examines the effect of CEO financial expertise on earnings management in non-financial firms conducting Initial Public Offerings (IPOs) in Indonesia between 2021 and 2023. CEO financial expertise is measured based on educational background and professional experience in the financial sector. Using multiple regression analysis on a sample of 141 firms, this study analyzes the relationship between CEO expertise and both accrual-based earnings management (AEM) and real earnings management (REM).The results show that AEM and REM decrease after the IPO, indicating that earnings management practices are more aggressive during the IPO period. However, CEO financial expertise has no significant effect on either AEM or REM. These findings suggest that financial knowledge alone is insufficient to curb opportunistic reporting behavior in the IPO context. Future research is recommended to explore corporate governance mechanisms as moderating factors in understanding the role of CEO expertise.

Review

This study tackles a pertinent and timely topic concerning the interplay between CEO financial expertise and earnings management practices within Indonesian non-financial firms undergoing Initial Public Offerings (IPOs) between 2021 and 2023. Leveraging a robust sample and employing multiple regression analysis to assess both accrual-based and real earnings management, the research effectively captures a snapshot of recent corporate behavior during a critical capital market event. The finding that earnings management is more aggressive *during* the IPO period than *after* provides a valuable empirical insight, consistent with theories of opportunistic behavior when firms seek external capital. Despite its clear methodology and focused scope, the core finding — that CEO financial expertise has no significant effect on either form of earnings management — warrants further critical discussion. While the abstract suggests this implies financial knowledge alone is insufficient, the study could benefit from a deeper theoretical exploration of potential contextual factors in Indonesia or limitations of the expertise measurement that might explain this null result. For instance, are there overarching corporate governance structures, market pressures, or regulatory enforcement levels in the Indonesian IPO market that could dilute the individual impact of a CEO's financial background? A more elaborate discussion on alternative explanations for this non-finding would enrich the study's contribution beyond merely stating the lack of significance. In conclusion, this research provides a valuable empirical contribution to the literature on earnings management during IPOs, particularly within an emerging market context. The incidental finding of heightened earnings management *during* the IPO itself is a significant takeaway for investors, regulators, and firms. While the primary hypothesis regarding CEO financial expertise was not supported, this outcome itself opens avenues for future inquiry. The recommendation to explore corporate governance mechanisms as moderating factors is a crucial next step, suggesting a move towards understanding the broader institutional context that truly shapes financial reporting quality, thereby building meaningfully upon the foundation laid by this study.

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