Analyzing Managers’ Speech to Detect Bad Earnings Management and Opportunistic Earnings Management in Pandemic Covid19 Outbreak

Abstract

This paper highlights the Earnings Management that has been carried out by previous companies and how they were practiced during the Covid 19 pandemic. Literature study was conducted on earnings management practice research both before and during the Covid 19 pandemic. The results of the study show that almost all companies that carry out earnings management experience difficulties. in maintaining the quality of its financial information/financial reports, because it worsens the economic situation, especially for large companies during this covid pandemic, such as service and distribution companies. The COVID-19 pandemic has also caused companies that carry out earnings management to be late in submitting financial reports, this is due to changes in regulators by the government so that it has an impact on company policies that will be reported. This delay also has an impact on the audit report that investors and stakeholders have been waiting for. The results of this literature study can be said that companies that carry out earnings management experience difficulties in maintaining the quality of financial reports, so that the quality of financial information submitted to investors and stakeholders. On the other hand, earnings management is still being carried out to help investors and stakeholders that the company can survive in the midst of the pandemic.