BOARD STRUCTURE AND EARNING MANAGEMENT: A COMPARATIVE STUDY BETWEEN THE PRE-PANDEMIC AND DURING THE COVID-19 PANDEMIC PERIODS

The agent is granted decision-making authority over the company’s operations to achieve the principal’s objectives (Jensen & Meckling, 1976). The economic crisis during the pandemic compelled managers to exert additional effort, such as earnings management. They aimed to achieve the desired profit and serve the principal’s best interests. Board structure elements such as board size, independence, women membership, and chief executive officer (CEO) duality correlate with board governance. The elements improve the quality of financial reports and reduce earnings management practices. Therefore, this study aimed to investigate the board structure’s influence on the earnings management of Indonesian firms before and during the pandemic. Covering a sample of 539 firms recorded on the Indonesia Stock Exchange (IDX) in Indonesia from 2019Q1 to 2020Q4, panel data regression is utilized to test the hypothesis. This study finds that only board size significantly impacted earnings management. The board size is less effective in overcoming earnings management in the normal period. However, the COVID-19 pandemic encouraged the board of directors to increase management monitoring. This means more board directors can reduce earning management effectively during the pandemic. It highlighted the significance of many board directors in reducing earnings management during the pandemic. © 2022 The Authors.

Using Correlation Analysis to Examine the Impact of Covid-19 Pandemics on Various Socioeconomic Aspects: Case study of Indonesia

This paper diagnoses the determination of Covid-19 on economic and social aspects in Indonesia. Panel data collected from 34 provinces in Indonesia for the 2020-2023 period supports the quantitative method. Three analyzes (Spearman, Kendall, and Pearson) were used to measuring the relationship and its partial effect. Research findings indicate that Covid-19 cases have a negative impact on labor productivity, migration, domestic violence, and sexual harassment. From other results, per capita spending, well-being, unemployment, and poverty actually increased when there was a surge in Covid-19. For the Spearman rho correlation, with a degree of 1 percent (p < 0.01), there is a significant effect between capita spending on well-being, per capita spending and well-being on migration, and poverty on labor productivity. Tested by Kendall’s tau and Pearson, the Covid-19 tragedy positively affected per capita spending, well-being, unemployment, poverty, and mortality, but labor productivity, migration, domestic violence, and sexual harassment were negatively affected by Covid-19. The partial probability level (p < 0.05 and p < 0.01) reveals a significant effect of per capita spending on well-being, migration on per capita spending and well-being, and poverty on labor productivity. Although per capita spending has a significant impact on well-being (5 percent confidence level), there is a slight difference from the Pearson test, where with a tolerance limit of 1 percent, poverty affects sexual harassment significantly. Covid-19 has taught many things, so that humanity does not disappear with conditions that seek peace. Policy makers need to schedule a more inclusive national and regional resilience system. © 2022. Geographica Pannonica. All Rights Reserved.