EARNINGS MANAGEMENT BEFORE AND AFTER THE EXISTENCE OF EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL) IN INDONESIA

Abstract

This study aims to determine and analyze the impact of XBRL adoption on earnings management carried out by company management in Indonesia. Earnings management in this study is proxied by discretionary accruals. The population of this study are manufacturing companies listed on the Indonesia Stock Exchange. The sample of this study was selected using purposive sampling method. The total sample of this study was 16 manufacturing companies. This research period is 2008-2022. Hypothesis testing is done with paired sample t test. The results of hypothesis analysis indicate a significant difference between the level of earnings management practices before and after the implementation of XBRL. This indicates that the adoption of XBRL can limit the opportunistic actions of management in the preparation of financial statements. In addition, the results also suggest that the implementation of XBRL can improve the quality of financial statements.