CAMELS Ratio and Earnings Management Practices in Islamic Banking

Abstract

This study aims to investigate whether there are Earnings Management Practices in Islamic Banks and is there any effect of the CAMELS Ratio both collectively and individually in Earnings Management Practices. The population used in this study is all Islamic banking companies in Indonesia published based on data from Bank Indonesia (BI) for the 2017-2019 period. Based on statistical data there are 11 Sharia Commercial Banks (BUS) and 23 Sharia Business Units (UUS). As a result, there are indications of earnings management practices in Islamic banks. This shows that Islamic bank managers intervene in the process of preparing financial statements by increasing or decreasing profits for certain purposes. The benefits of research for academics, can add to and contribute to the development of theoretical studies, literature in the field of Management and Accounting, especially Islamic Banking. And for practitioners, assessing the Bank's performance in achieving the targets that have been set so that they can manage their resources to establish appropriate policies.