Friday, March 15, 2024, the Master of Science and Doctoral Program (MD) FEB UGM has successfully held a scientific discussion event, namely the MD Accounting Research Forum. This event presented the speaker, Doctoral Student of Accounting Science FEB UGM, namely Rr Widya Ningtyas Soeprajitno. This research forum raised the topic of “The Effects of Government Policies during the COVID-19 Pandemic on Earnings Management” which is a research from Raden Roro Widya Ningtyas Soeprajitno, Ainun Na`im, Prof., M.B.A., Ph.D., and Fuad Rakhman, Ph.D. This activity was held offline in the Lippo Room, Gd. MD FEB UGM from 08:00-09:00 WIB.
In this scientific discussion, Rr Widya Ningtyas Soeprajitno brought interesting research on the impact of government policies on earnings management practices amid the COVID-19 pandemic. The research highlighted the different effects between the government’s restrictive policies and economic policies on corporate earnings management practices.
According to the study, government restriction policies tend to reduce earnings management practices. This may occur because restrictive policies, such as lockdowns or business closures, limit the flexibility of companies in carrying out aggressive earnings management practices. Conversely, government economic policies, such as economic stimulus or tax incentives, may increase earnings management practices. This may be because companies tend to take advantage of opportunities from economic policies to optimize their profits.
This finding provides important insights into how management decisions are affected by government policies amidst the economic uncertainty caused by the pandemic. It also highlights the importance of an in-depth understanding of the dynamics between government policies and corporate behavior in the context of a crisis like this.
For policymakers, the results of this study provide valuable insights to design more effective policies in the face of economic challenges faced by firms during the pandemic. With a better understanding of how government policies can affect firms’ management practices, policymakers can take more appropriate measures to mitigate negative impacts and strengthen economic resilience.
Participants who attended this forum consisted of various parties, including students, academics and practitioners who enthusiastically listened to the speakers’ explanations with very interesting research. It is hoped that this event will be able to increase knowledge and motivate participants to contribute.