The Effect Of Green Intellectual Capital, CEO Characteristic, Free Cash Flow On Prudence Moderated By Enviromental Performance
DOI:
https://doi.org/10.38035/jafm.v5i3.689Keywords:
Green Intellectual Capital, CEO Characreristics, Free Cash Flow, Prudence, Environmental PerformanceAbstract
The rapid development of many industries in the world has resulted in environmental damage due to excessive use and exploitation of natural resources. As a result, there is a decline in environmental quality resulting in global warming, ozone depletion, pollution, and acid rain. The impact of environmental conventions in the world Montreal Convention, Kyoto Protocol, Ban on the Use of Certain Hazardous Materials and increasing consumer environmentalism can change the context of competition in industries around the world. This study aims to examine the effect of Green Intellectual Capital, CEO Characteristic, Free Cash Flow on Prudence moderated by Environmental Performance. This study took the research population in the energy sector companies listed on the Indonesia Stock Exchange for the period 2019-2023. The type of data used in this study is secondary data in the form of financial reports of companies that are used as samples. The research method used in this study is a quantitative research method. The sample was selected using the purposive sampling method. For hypothesis testing, this study uses multiple linear regression analysis. Based on the results of this study, it shows that Green Intellectual Capital, Busy Director, and Free Cash Flow have an effect on prudence but CEO Tenure has no effect on Prudence. Environmental Performance strengthens the influence of Green Intellectual Capital, Busy Director, and Free Cash Flow on prudence and Environmental Performance strengthens the influence of CEO Tenure on prudence.
References
Aburisheh, Khaled Eriej, Ahmad Abdelrahim Dahiyat, Walid Omar Owais, Ayman Mohammad Al Shanti, and Laith Akram AlQudah. 2022. The effect of ownership structure and board structure on accounting conservatism throughout financial reporting: Evidence from Jordanian industrial corporations. Cogent Business & Management 9: 2112819.
Adyunita, Dini, Bernadette Robiani, and Tertiarto Wahyudi. 2021. The Influence of Board Members’ Diversity Characteristics on Accounting Conservatism of Service Firms in Infrastructure, Utilities, and Transportation Sectors on the Indonesia Stock Exchange. Journal of Business & Economic Policy 8: 44–56.
Ahmed, Anwer S., Bruce K. Billings, Richard M. Morton, and Mary Stanford-Harris. 2002. The role of accounting conservatism in mitigating bondholder-shareholder conflicts over dividend policy and in reducing debt costs. The Accounting Review 77: 867–90
Andriansyah, A., & Anindya, W., & Yuyetta, E. N. A. (2020). Pengaruh Leverage, Sales Growth, Ukuran Perusahaan dan Profitabilitas Terhadap Manajemen Laba. Diponegoro Journal of Accounting, 9(3).
Ardillah, K., & Rusli, Y. M. (2022). The Effect Of Corporate Governance Structures, Environmental Performance, And Media Coverages To Carbon Emissions Disclosure. Ultimaccounting Jurnal Ilmu Akuntansi, 14(2), https://doi.org/https://doi.org/10.31937/akuntansi.v14i2.2716 246-263.
Arifin, L., Saputri, N., & Prasetiyo, A. (2022). Pengaruh Komisaris Independen, Profitabilitas Terhadap Manajemen Laba (Studi Empiris Pada Perusahaan Manufaktur). RELEVAN: Jurnal Riset Akuntansi, 2(2), 84- 99.
Cornelia, E., & Adi, S. W. (2022). Pengaruh Profitabilitas, Leverage, Free Cash Flow dan Asimetri Informasi Terhadap Manajemen Laba Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2016-2019. JEpa, 7(1), 177-186.
Dewi, E. P., & Nurhayati, I. (2022). Pengaruh Leverage dan Profitabilitas Terhadap Manajemen Laba Dengan Kepemilikan Manajerial Sebagai Variabel Moderasi. Jurnal GeoEkonomi, 13(1), 40-54.
Effendi, E., Masnur, M., & Rahmadanti, R. (2021). The Effect of Disclosure of Other Comprehensive Income, Profitability, Leverage, and Company Size on Earnings Management (Study on Financing Institutions SubSector Service Companies Listed on the Indonesia Stock Exchange for the 2018-2019 Period). Enrichment: Journal of Management, 12(1), 243-252.
Fabiani, F., & Breliastiti, R. (2020). Corporate governance, corporate social responsibility and financial performance, CGPI award in Indonesia. In International Conference on Management, Accounting, and Economy (ICMAE 2020) (pp. 18-22). Atlantis Press.
Fadillah, I. N. (2022). Pengaruh Tax Planning dan CSR Terhadap Manajemen Laba. SIBATIK JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, dan Pendidikan, 1(10), 2253-2264.
Fadriosa, I. (2022). Pengaruh Kepemilikan Manajerial, Ukuran Perusahaan dan Asimetri Informasi Terhadap Manajemen Laba. Abstract of Undergraduate Research, Faculty of Economics, Bung Hatta University, 21(1).
Febria, D. (2020). Pengaruh Leverage, Profitabilitas Dan Kepemilikan Manajerial Terhadap Manajemen Laba. SEIKO: Journal of Management & Business, 3(2), 65-77.
Fernando, R., Rusli, Y.M., & Hakki, T.W. (2023) Pengaruh Financial Distress, Litigation Risk dan Capital Intensity Terhadap Accounting Conservatism. Prosiding Konferensi Ilmiah Akuntansi. 10(1), 1-16 Ghozali, Imam. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro: Semarang.
Iraya, Cyrus, Mirie Mwangi dan Gilbert W. Muchoki. 2015. The Effect of Corporate Governance Practices on Earnings Management of Companies Listed At the Nairobi Securities Exchange. European Scientific Journal January 2015 edition vol.11, No.1 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431
Jensen, M., dan Meckling, W. 1976. Theory of The firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3: 305– 360.
Komite Nasional Kebijakan Governance. 2006. Pedoman Good Corporate Governance Indonesia.Jakarta.
Pratiwi, A., Nurkholis, dan A. Ghofar. 2015. Pengaruh Corporate Governance dan Struktur Kepemilikan terhadap Asimetri Informasi. JAAI Volume 19 Nomor 2, Desember 2015: 99 – 111.Https://doi.org/10.20885/jaai.vol19.iss2.art2
Plöckinger, Martin, Ewald Aschauer, Martin R. W. Hiebl, and Roman Rohatschek. 2016. The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory. Journal of Accounting Literature 37: 55–75.
Qawasmeh, Saja, and Mohammad Azzam. 2020. CEO characteristics and earnings management. Accounting 6: 1403–10.
Riwayati, Hedwigis Esti, Markonah, dan Muldjanto Siladjaja. 2016. Implementation of Corporate Governance Influence to Earnings Management. Procedia - Social and Behavioral Sciences 219 (2016 ) 632 – 638.
Rusli, Y. M. (2019), Environmental Performance Versus Corporate Financial Performance (Environmental Media Exposure di Indonesia), Equity, Volume 22, Nomor 1, 89-108
Rusli, Y. M., & Pangestu, J. C. (2022). Environmental Factors Affecting Financial Performance During The Covid-19 Pandemic In Asean: Social Disclosure As Moderating. Indonesian Journal of Accounting and Governance ISSN, 2579, 7573.
Sun, Jerry, George Lan, and Guoping Liu. 2014. Independent Audit Committee Characteristics and Real Earnings Management. Managerial Auditing Journal, Vol. 29, No.2.
Surjadi, M., Hakki, T. W., Rusli, Y. M., & Supiadi, S. (2023). Kepedulian Managemen Dengan Lingkungan Hijau Sebagai Pemoderasi Antara Inovasi Hijau Terhadap Kinerja Perusahaan Yang Berkelanjutan. Accounting Cycle Journal, 4(2), 34-44.
Sterling, Robert R. 1970. The Theory of the Measurement of Enterprise Income. Lawrence, KS: University of Kansas Press.
Stevens, John M., Janice M. Beyer, and Harrison M. Trice. 1978. Assessing personal, role, and organizational predictors of managerial commitment. Academy of Management Journal 21: 380–96.
Watts, Ross L. 2003. Conservatism in accounting part I: Explanations and implications. Accounting Horizons 17: 207–21. Watts, Ross L., and Jerold L. Zimmerman. 1986. Positive Accounting Theory. Hoboken: Prentice-Hall Inc.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 tandry Whittleliang Hakki, Herlina Herlina, Karvicha Akwila, Priccilya Jurjanta
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Journal of Accounting and Finance Management (JAFM) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Accounting and Finance Management (JAFM).
