EARNINGS MANAGEMENT AND FIRM FINANCIAL MOTIVES AN EMPIRICAL STUDY ON MANUFACTURING COMPANIES IN INDONESIA
| Main Authors: | Wibiksono, Rosalia Anita, Yie Ke, Feliana |
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| Format: | Proceeding PeerReviewed application/pdf |
| Terbitan: |
, 2015
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| Subjects: | |
| Online Access: |
http://repository.ubaya.ac.id/24553/7/fa009_Abstrak_2015.pdf http://repository.ubaya.ac.id/24553/1/fa009.pdf http://repository.ubaya.ac.id/24553/ |
Daftar Isi:
- Abstract This study aims to determine whether companies with high level of political costs, close to debt covenant violation, issuing equity or bonds, applying a bonus based earnings, achieving and/or exceeding analyst's forecasts, have effect on earnings management. In addition, this study examines whether this relationship are influenced by some company financial conditions, such as the level of profitability, size, leverage, growth, liquidity, and investment. Previous studies generally focus only on one type of motivation to perform earnings management. Therefore, this study enhances the literatures by studying comprehensively various events that may motivate companies to perform earnings management. The results show the level of political costs, bonus based earnings, and benchmarking financial analyst forecasts have significant positive effects on earnings management. Meanwhile, the events of debt covenant violation, issuance of equity or bond have no effect on earnings management. The company financial condition moderated the association between each motive to earnings management, although there is no significant direct impact between financial conditions to earnings management. Keywords: earnings management, motivation, financial condition