Rediyanto Putra, Rohmawati Kusumaningtias, Pujiono, Inneke Putri Widyani
The purpose of this article is to explain and reveal the relevance of theory in accounting; there is the agency theory and earnings management with the view of sociology belonging to Marx and Ibnu Khaldun. Based on the discussion that a conflict of interest in the agency relationship is characterized by earnings management by the Manager following what is expressed by Karl Marx about the social conflict between social classes, where the cause of conflict in the agency theory has similarities with the thinking of Karl Marx is their utility maximization. What is disclosed following Karl Marx is that the conflict between the bourgeoisie and the proletariat cannot be completed, as evidenced by their earnings management actions that continue to occur and are less likely to be known by the shareholders due to the asymmetry of information between shareholders and managers. However, in this view, Ibnu Khaldun described the importance of solidarity and brotherhood among communities providing different views from Marx. In the sight of Ibn Khaldun, the agency relationship can be established if there is a sense of solidarity and fraternity because the presence of the flavour will create affection among all parties in a business entity. This will minimize and even eliminate the earnings management actions undertaken by management. © 2025, SRAC - Romanian Society for Quality. All rights reserved.
Department of Accounting, Faculty of Economics and Business, Universitas Negeri Surabaya, Indonesia, Jl. Ketintang No. 2, East Jawa, Surabaya City, Indonesia; Department of Accounting, Faculty of Economics, Universitas Terbuka, Indonesia, Jl. Cabe Raya, Pondok Cabe, Pamulang, Banten, Tangerang Selatan, 15437, Indonesia
