Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

Narcissism CEOs and Earning Management in Islamic Bank Evidence in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2305571,
        author={Nisrina  Savitri and Dodik  Siswantoro},
        title={Narcissism CEOs and Earning Management in Islamic Bank Evidence in Indonesia},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={narcissism ceo earning management loan loss provision islamic bank},
        doi={10.4108/eai.1-10-2020.2305571}
    }
    
  • Nisrina Savitri
    Dodik Siswantoro
    Year: 2021
    Narcissism CEOs and Earning Management in Islamic Bank Evidence in Indonesia
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2305571
Nisrina Savitri1,*, Dodik Siswantoro1
  • 1: Universitas Indonesia
*Contact email: Nisrinasavitri61@gmail.com

Abstract

This study examines relationship between psychological aspects of CEOs in Islamic Banking to earnings management, psychological aspects related to narcissism CEO. Based on the upper echelon theory, this study picks up the notion that narcissistic CEOs take advantage of accounting choices to enhance their firms and inherently their own personal track records. CEO considered parties related to the company's strategy and decision making, specifically for loan loss provision that represents earning management in the bank industry. Limited research in Islamic area especially in Islamic bank, which explain the psychological aspect from CEO. This study uses a sample of Islamic Banking in Indonesia 2014-2018, which is to measure CEO narcissism by using a photo size of CEO from the annual report, measurement of earnings management using loan loss provision. This study found evidence that there is no relationship between the psychological features of the CEO on earnings management in Islamic Bank.