CAN WE BOOST STOCK VALUE USING INCOME-INCREASING STRATEGY? THE CASE OF INDONESIA
| Main Authors: | Rudiawarni, Felizia Arni, Sulistiawan, Dedhy |
|---|---|
| Format: | Article PeerReviewed application/pdf |
| Terbitan: |
Serials Publications
, 2015
|
| Subjects: | |
| Online Access: |
http://repository.ubaya.ac.id/37135/1/Vol%2013%20Issue%207%20(2015)%20CAN%20WE%20BOOST%20STOCK%20VALUE.pdf https://serialsjournals.com/abstract/61037_6093-6103.pdf http://repository.ubaya.ac.id/37135/ |
Daftar Isi:
- The main purpose of this study is to investigate the impact of accrual information to stock valuation. Managing earnings using income-increasing strategy cause stock to be overvalued.Using Indonesian data, this study selects companies that produce positive discretionary accrual. Those companies are assumed managing earnings trough incomeincreasing strategy based on Modified Jones Model (Dechow et al.,1995) and Kasznik Model (1999). Based on the findings, our conclusions are (1) income-increasing strategy negatively affects stock value, and (2) income-increasing strategy using receivable positively affects stock value. This study is expected to contribute to earnings management and overvaluation studies, especially in emerging market.