The Effects Of Shariah Supervisory Board Education Qualifications, Number Of Shariah Supervisory Board Meetings And Management Bonus Compensation On Earnings Management

The purpose of this research study is to examine the effect of Shariah Supervisory Board Education Qualifications, Number of Shariah Supervisory Board Meetings, and Management Bonus Compensation on Earnings Management Practices. The population used is the Shariah Commercial Bank registered at Bank Indonesia in 2014-2018. The secondary data collection technique is done by searching the annual report data issued by each Islamic commercial bank. Multiple regression analysis is used to test the effect of Shariah Supervisory Board Background, Number of Shariah Supervisory Board Meetings, and Management Bonus Compensation on Earnings Management Practices. Research Results Show that the Educational Qualification and Number of Meetings of the Shariah Supervisory Board do not affect earnings management practices. Whereas Management Bonus Compensation has a positive effect on earnings management practices. This shows that the characteristics of the Shariah Supervisory Board do not cause earnings management practices in Islamic financial institutions to occur or not occur. However, bonus compensation received by managers causes managers to be motivated to do earnings management. Earnings management practices by management are shown through positive or negative Discretionary Accrual values.