Evaluating the Impact of Digital Transformation and Sustainability Strategies on Earnings Management: A Text Mining Approach


  • Agung Septia Wibowo Direktorat Jenderal Pajak; Universitas Gadjah Mada
  • Iis Istianah Badan Pemeriksa Keuangan; Universitas Gadjah Mada
  • Nia Pramita Sari Universitas Indonesia; Universitas Gadjah Mada
  • Dovi Septiari Universitas Negeri Padang; Universitas Gadjah Mada




digital transformation, sustainability, earnings management, text mining


Digital transformation has the potential to fundamentally change companies and create value. This study examines the impact of digital transformation and sustainability strategies on the earnings quality of Indonesian listed companies on three sectors: infrastructures, transportation and logistics, and consumer non-cyclicals. Using text mining techniques to measure intensity of digital transformation and sustainability strategies, we found that sustainability strategy shown in the company’s annual report reflects lower level of earnings management especially in accrual earnings management, while companies with digital transformation strategy, particularly in artificial intelligence technology, are less likely to engage real earnings management. Findings of this study provide insights into the effect of digital transformation and sustainability on the quality of accounting information and corporate governance, and offer implications for corporate digital transformation and government regulation.


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How to Cite

Wibowo, A. S., Istianah, I., Sari, N. P., & Septiari, D. (2024). Evaluating the Impact of Digital Transformation and Sustainability Strategies on Earnings Management: A Text Mining Approach. Asia Pacific Fraud Journal, 9(1), 49–64. https://doi.org/10.21532/apfjournal.v9i1.339