Dampak Perilaku Manajemen Laba terhadap Penilaian Reputasi Manajer: Studi Eksperimental Perspektif Internal Labor Market

Abstract

This study is designed to invest about consequences of a target manager who decide whether to engage in earnings management. An laboratory experimental with 3x1 between subject is used to examine the potential negative reputation effect in the internal labor market's setting that occur as a consequences of earnings management. Data in this study were collected for two months at the beginning of 2017. Participants consisted of 109 master of accounting and master of management students of UGM who assigned to the role as manager. Participants were asked to respond to a scenario about another manager (the target manager) who has the opportunity to engage earnings management. Participant assessed the ethical of the target manager and reputation judgment. The results of this study indicated that a target manager engaging in earnings management is assessed less ethical than a target manager not engaging in earnings management. Meanwhile, the results indicated that no difference in ethical judgments of a target manager engaging in accounting method manipulation and operating decision manipulation. In addition, ethical judgment was significantly and positive affected with reputation judgment. Further analysis indicates that ethical judgment mediate the effect between earnings management and reputation judgment. This study discuss implication of these results for management control systems design and for future research.