Financial Shenanigans and Financial Performance: Evidence in Asia Pacific
Eklamsia Sakti (a*), Yustin Nur Faizah(a),Tarjo(b), Prasetyono(c), Moh.Toyyib(d)

(a*)Sekolah Tinggi Ilmu Kesehatan Ngudia Husada Madura, eklams000[at]gmail.com
(a) Politeknik NSC Surabaya, faizah.yustin[at]gmail.com (b,c)Universitas Trunojoyo Madura
(d)STIESIA Surabaya

Abstract

This research aims to empirically test the influence of financial shenanigans on financial performance. The subject of this research concerns mining companies in Indonesia and China. The research sample consisted of 300 company data, including 120 Indonesian company data and 180 Chinese company data. The analysis technique uses panel data regression with the statistical tool EViews. Proxies for financial shenanigans use Dechow^s F-score, Beneish^s M-score, discretionary accruals, and real earnings management. Meanwhile, the financial performance indicators are return on equity (ROE) and net profit margin (NPM). Based on the results of the random effects model, this study found evidence that financial shenanigans as represented by Dechow^s F-score, Beneish^s M-score, and discretionary provisions have a significant positive effect on financial performance

Keywords: Financial shenanigans, financial performance, Indonesia, China

Topic: Financial accounting (colloquium)