Earnings Management, Business Strategy, and Bankruptcy Risk
| Main Author: | NUR PRATAMA ABDI MUHAMMAD, 041411333047 |
|---|---|
| Format: | Thesis NonPeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2018
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| Subjects: | |
| Online Access: |
http://repository.unair.ac.id/76562/1/ABSTRAK%20.pdf http://repository.unair.ac.id/76562/2/A%20421-18%20Muh%20e.pdf http://repository.unair.ac.id/76562/ http://lib.unair.ac.id |
Daftar Isi:
- The purpose of this paper is to examine the effect of accrual earnings management and business strategy to bankruptcy risk. Multiple Least Square (MLS) regression and M-Estimator regression are performed on financial data of 1,068 non-financial firms listed in Indonesia Stock Exchange (IDX) for the period of 2014 – 2016 to provide empirical evidence of the effect of earnings management and business strategy to bankruptcy risk. The result indicate that firms which employ earnings management are unlikely to bear greater bankruptcy risk, while firms that implements either one of two generic business strategy of cost leadership or differentiation, significantly mitigate the risk of bankruptcy. The effect of earnings management to bankruptcy risk is essential for external stakeholders such as investors and creditors to assess bankruptcy risk, financial capability, and credit worthiness of firm, while business strategy effect on bankruptcy risk benefits internal stakeholders such as managers in formulating strategies to deal with going concern issues. This is the first paper that puts spotlight on the link among earnings management, business strategy, and bankruptcy risk.