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Exploring the interplay of earnings management, business strategy and market competition: the case of Indonesia and South Korea

Asian Journal of Accounting Research · Ocak 2024

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YÖKSİS Kayıtları
Exploring the interplay of earnings management, business strategy and market competition: the case of Indonesia and South Korea
Asian Journal of Accounting Research · 2025 Scopus
DOÇENT ABDURRAHMAN GÜMRAH →

Makale Bilgileri

DergiAsian Journal of Accounting Research
Yayın TarihiOcak 2024
Erişim🔓 Açık Erişim
Özet Purpose: The purpose of this study is to investigate the connection between earnings management, business strategy, and market competition. Design/methodology/approach: The study utilizes data from non-financial companies listed on the Indonesia and South Korea Stock Exchange between 2017 and 2021, involving 2,598 firms from Indonesia and 3,256 firms from South Korea. We use data panel analysis to explore the relationships between variables. Findings: Firms using cost leadership are prone to earnings management, while differentiation strategies are less inclined to do so. Market competition negatively correlates with earnings management in Indonesia and South Korea. Market competition moderates the relationship between differentiation strategy and earnings management in both countries. When profitability is considered, the results remain consistent, particularly in Indonesia. Research limitations/implications: This research enriches previous studies on earnings management and business strategy by examining the extent of industry competitiveness in developed and developing markets. Practical implications: This finding is significant for managers, guiding them in the selection of an appropriate business strategy within a competitive environment. Originality/value: This study is unique in that it examines the subject matter in both developed and developing countries, specifically Indonesia and South Korea, to compare the differences.

Yazarlar (4)

1
Adela Cornelia Fedora
2
Felizia Arni Rudiawarni
ORCID: 0000-0003-1116-4804
3
Dedhy Sulistiawan
4
Abdurrahman Gümrah

Anahtar Kelimeler

Business strategy Cost leadership Differentiation Earnings management Market competition

Kurumlar

Selçuk Üniversitesi
Selçuklu Turkey
Universitas Surabaya
Surabaya Indonesia