Proceedings of the 4th International Conference on Accounting, Management, and Economics, ICAME 2019, 25 October 2019, Makassar, Indonesia

Research Article

The Effect of Implementing Enterprise Resource Planning (ERP) System on Earnings Management

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  • @INPROCEEDINGS{10.4108/eai.25-10-2019.2295393,
        author={Beatrix P Danduru and Rifka A Inayah and Annisa  Nurfaidah and Grace T Pontoh},
        title={The Effect of Implementing  Enterprise Resource Planning (ERP) System on Earnings Management},
        proceedings={Proceedings of the 4th International Conference on Accounting, Management, and Economics, ICAME 2019, 25 October 2019, Makassar, Indonesia},
        publisher={EAI},
        proceedings_a={ICAME},
        year={2020},
        month={6},
        keywords={enterprise resource planning (erp) earnings management},
        doi={10.4108/eai.25-10-2019.2295393}
    }
    
  • Beatrix P Danduru
    Rifka A Inayah
    Annisa Nurfaidah
    Grace T Pontoh
    Year: 2020
    The Effect of Implementing Enterprise Resource Planning (ERP) System on Earnings Management
    ICAME
    EAI
    DOI: 10.4108/eai.25-10-2019.2295393
Beatrix P Danduru1,*, Rifka A Inayah1, Annisa Nurfaidah1, Grace T Pontoh1
  • 1: Hasanuddin University
*Contact email: putridanduru@gmail.com

Abstract

This study examines the relationship between ERP system implementation and earnings management. The study population is basic and chemical industry companies listed on the Indonesia Stock Exchange (IDX). The sample in this study is in the form—annual financial statements of 11 companies that meet the criteria for purposive sampling. The financial statement period is set 3 years before the implementation of the ERP system, and the financial report is three years after the implementation of the ERP system. Research shows that financial statements produced with ERP systems are not able to reduce the existence of manipulation of financial data. The amount of investment and exceed expectations of the implementation of the ERP system is the reason for the need for research to determine the benefits obtained after the implementation of the system.