Prevention Of Earnings Management Behavior In The Banking Industry Through Government Regulations

Nurshadrina  Kartika Sari; Isti  Fadah; Yuli  Hariyati; Nurhayati Nurhayati

doi:10.31967/prmandala.v4i0.814

Nurshadrina Kartika Sari Institut Teknologi dan Sains Mandala
Isti Fadah University of Jember
Yuli Hariyati University of Jember
Nurhayati Nurhayati University of Jember

DOI: https://doi.org/10.31967/prmandala.v4i0.814

Abstract

One of the motivations for managers to manage earnings is regulatory motivation. The banking industry is bound by various government and industry regulations, so that banks must be able to maintain their financial performance. one of the rules that causes the banking industry to practice earnings management is the obligation to fulfill bank capital. This ratio aims to maintain the bank's ability to deal with business risks, one of which is credit risk. Various studies have found that banks use LLP to manage earnings. In addition to capital regulations, financial reporting accounting standards and stock exchange regulations can motivate managers to manage earnings. The research results compiled were taken from various articles and literature from various countries in Asia, America and Europe.