Earning Management and Risk Profile in the Banking Industry: Case Study from Indonesia


  • Hery Winoto Tj
  • . .






Earnings management, risk profile, FMOLS regression.


This study aims to investigate the application of earnings management and risk profile in the banking industry in Indonesia, during the period 2008-2017 data on 41 banks listed on the Stock Exchange. This research use analysis technique of FMOLS regression data by first doing correlation test by using correlogram. From the research that has been conducted in the results that there is a very significant relationship between earnings management and risk profile in 41 banks in Indonesia.




[1] Bortoluzzo AB, Sheng HH & Gomes ALP, “Earning management in Brazilian financial institutionsâ€, Revista de Administração, Vol.51, No.2, (2016), pp.182-197.

[2] Bornemann S, Kick T, Memmel C & Pfingsten A, “Are banks using hidden reserves to beat earnings benchmarks? Evidence from Germanyâ€, Journal of Banking & Finance, Vol.36, No.8, (2012), pp.2403-2415.

[3] Degeorge F, Patel J & Zeckhauser R, “Earnings management to exceed thresholdsâ€, The Journal of Business, Vol.72, No.1, (1999), pp.1-33.

[4] Dechow PM & Skinner DJ, “Earnings management: Reconciling the views of accounting academics, practitioners, and regulatorsâ€, Accounting horizons, Vol.14, No.2, (2000), pp.235-250.

[5] Dechow PM, Sloan RG & Sweeney AP, “Detecting earnings managementâ€, Accounting review, (1995), pp.193-225.

[6] McNichols MF, “Research design issues in earnings management studiesâ€, Journal of Accounting and Public Policy, Vol.19, No.4, (2000), pp.313-345.

[7] Phillips PCB & Bruce EH, “Statistical Inference in Instrumental Variables Regression with I(1) Processesâ€, Review of Economics Studies, Vol.57, (1990), pp.99-125.

[8] Wooldridge JM, Introductory econometrics: A modern approach, South-Western: CENGAGE Learning, (2002).

[9] Greene W, Econometric analysis. (5a ed.), New Jersey: Prentice Hall Inc, (2010).

[10] Gujarati DN, Econometria básica. (4a ed.). Rio de Janeiro: Elsevier, (2006).

[11] Akhpanov, S. Sabitov, R. Shaykhadenov (2018). Criminal pre-trial proceedings in the Republic of Kazakhstan: Trend of the institutional transformations. Opción, Año 33. 107-125.

[12] Z Iskakova, M Sarsembayev, Z Kakenova (2018). Can Central Asia be integrated as asean? Opción, Año 33. 152-169.


View Full Article:

How to Cite

Winoto Tj, H., & ., . (2018). Earning Management and Risk Profile in the Banking Industry: Case Study from Indonesia. International Journal of Engineering & Technology, 7(3.27), 376–378. https://doi.org/10.14419/ijet.v7i3.27.17976
Received 2018-08-20
Accepted 2018-08-20
Published 2018-08-15