Accrual Earnings Management and Real Earnings Management: Increase or Destroy Firm Value?

I Putu Edi Darmawan, Sutrisno T, Endang Mardiati

Abstract


This study aims to investigate empirically the effect of accrual earnings management and real earnings management on firm value. The analysis technique used is multiple linear regression analysis. The research samples were manufacturing firms listed on the Indonesia Stock Exchange during the period of 2013 to 2017. The analysis tool used is Multiple Linear Regression. The test results showed that accrual earnings management measured by discretionary accruals did not affect on value of the firm. Real earnings management was found to have a negative effect on firm value.


Keywords


accrual earnings management, real earnings management, firm value

Full Text:

PDF

References


Abbas, Z., Rizwan, M. F., dan Khan, P. M. A. (2017). Abnormal Accruals and Firm Value, Panel Data Analisis of Banking Industry of Pakistan. The Journal of Developing Areas, 51 (3), 281-297.

Afza, T. and Nazir, M. S. (2013). Audit Quality and Firm Value: A Case of Pakistan. Research Journal of Applied Sciences, 7 (9), 1803-1810.

Aggarwal, D. and Padhan, P. C. (2017). Impact of Capital Stracture on Firm Value: Evidence from Indian Hospitality Industry. Theoretical Economics Letters, 7 (4), 982-1000.

Asrianti dan Rahim, S. (2015). Pengaruh Laba dan Arus Kas Terhadap Harga Saham Perusahaan LQ 45 di Bursa Efek Indonesia. Jurnal Akuntnasi Aktual, 3 (1), 22-38.

Carter, D. A., Simkins, B. J., and Simpson, W. G. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38, 33-53.

Caylor, M. L., Christensen, T. E., Johnson, P. M., dan Lopez, T. J. (2015). Analysts’ and Investors’ Reactions to Consistent Earnings Signals. Journal of Business Finance & Accounting, 42 (9),1041-1074.

Challen, A. E. dan Siregar S. V. (2012). Audit Quality on Earnings Management and Firm Value. Finance and Banking Journal, 14 (1), 30-43.

Cohen, D. A., A. Dey, dan T. Z. Lys. (2008). Real and Accrual-Based Earnings Management in the Pre- and Post-Serbanes-Oxley Periods. The Accounting Review, 83 (3), 757-787.

DeAngelo, L. Elizabeth. (1981). Auditor Size and Audit Quality. Journal of Accounting and Economic. 3, 183-199.

Dewi, T., Pratomo, D., dan Dillak, V. J. (2016). Pengaruh Manajemen Laba terhadap nilai Perusahaan dengan Kualitas Audit Sebagai Variabel Pemoderasi. e-Proceeding of Management. Vol. 3 (3), hlm. 3396-3402.

Dhecow, P. M., Sloan, R. G., dan Sweeney, A. P. (1995). Detecting Earnings Management. The Accounting Review, 70 (2), 193-225.

Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. Academy of Management, 14 (1), 57-74.

Fama, Eugene F. (1978). The Effect of a Firm’s Investment and Financial Decisions on the Welfare of Its Security Holders. American Economic Review, 68 (2), 272-284.

Ferdawati. (2009). Pengaruh Manajemen Laba Real Terhadap Nilai Perusahaan. Jurnal Akuntansi & Manajemen, 4 (1), 57-74.

Hartono, Jogiyanto. (2017). Teori Portofolio dan Analisis Investasi. Edisi kesebelas. BPFE: Yogyakarta.

Healy, P. M. dan J. M. Wahlen. (1999). A Review of the Earnings Management Literature and Its Implications for Standard Setting. Accounting Horizons, 13 (4), 365-383.

Herawati, Vinola. (2008). Peran Praktek Corporate Governance sebagai Moderating Variable dari Pengaruh Earnings Management terhadap Nilai Perusahaan. Jurnal Akuntansi dan Keuangan, 10 (2), 97-108.

Indriani, P., Darmawan, J., dan Nurhawa, S. (2014). Analisis Manajemen Laba terhadap Nilai Perusahaan yang Terdaftar di Bursa Efek Indonesia (Studi Khusus: Perusahaan Dagang Otomotif). Jurnal Akuntansi & Keuangan, 5 (1), 19-32.

Jensen, Michael C. dan Meckling, William. (1976). Theory of the Firm, Managerial Behavior, Agency, and Ownership Structure. Journal of Financial Economic, 3 (4), 305-360.

Jones, Jennifer J. (1991). Earnings Management During Import Relief Investigations. Journal of Accounting Research, 29 (2), 193-228.

Khan, H. T. M. dan N. V. Khoung. (2018). Audit Quality, Firm Characteristics and Real Earnings Management: The Case of Listed Vietnamese Firms. International Journal of Economics and Financial. 8 (4), 143-249.

Kothari, S. P., Leone, A. J., dan Wasley, C. E. (2005). Performance Matched Discretionary Accruals Measures. Journal of Accounting and Economics, 39, 163-197.

Lesmana, I. P. A. S. dan Sukarta, I. M. (2017). Pengaruh Manajemen Laba pada Nilai Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2012-2015. E-jurnal Akuntansi Universitas Udayana, 19 (2), 1060-1087.

Mahendra, A., Artini, L. G. S., dan Suarjaya. (2012). Pengaruh Kinerja Keuangan terhadap Nilai Perusahaan pada Perusahaan Manufaktur di Bursa Efek Indonesia. Jurnal Manajemen, Strategi Bisnis, dan Kewirausahaan, 6 (2), 130-138.

Marfuah. (2006). Pengaruh Kecanggihan Investor terhadap Ketepatan Reaksi Pasar dalam Merespon Pengumuman dividen meningkat. JAAI, 10 (2), 137-154.

Marsha, N. and Murtaqi, I. (2017). The Effect of Financial Ratios on Firm Value in the Food and Beverage Sector of the IDX. Journal of Business and Management, 6 (2), 214-226.

Nekhili, M., Nagati, H., Chtioui, T., and Rebolledo, C. (2017). Corporate Social Responsibility Disclosure and Market Value: Family versus Nonfamily Firms. Journal of Business Research, 77, 41-55.

Prasetyorini, B. Fikri. (2013). Pengaruh Ukuran Perusahaan, Leverage, Price Earning Ration dan Profitabilitas terhadap Nilai Perusahaan. Jurnal Ilmu Manajemen, 1 (1), 183-196.

Ridwan, M. dan Hunardi, A. (2013). Peran Mekanisme Corporate Governance sebagai Pemoderasi Praktik Earnings Management terhadap Nilai Perusahaan. Trikonomika, 12 (1), 49-60.

Rosikah, Prananingrum, D. K., Muthalib, D. A., Azis, M. I., and Rohansyah, M. (2018). Effects of Return on Asset, Return on Equity, Earning per Share on Corporate Value. The International Journal of Engineering and Science, 7 (3), 6-14.

Roychowdhury, Sugata. (2006). Earnings Management Through Real Activities Manipulation. Journal of Accounting and Economic, 42, 335-370.

Scott, William R. (2015). Financial Accounting Theory. Seventh Edition. Pearson: United State of America.

Siallagan, H. dan Machfoedz, M. (2006). Mekanisme Corporate Governance, Kualitas Laba, dan Nilai Perusahaan. Simposium Nasional Akuntansi 9 Padang.

Siallagan, Hamonangan. (2009). Pengaruh Kualitas Laba Terhadap Nilai Perusahaan. Jurnal Akuntansi Kontemporer, 1 (1), 21-32.

Susanto, S. dan Christiawan. (2016). Pengaruh Earnings Management terhadap Firm Value. Business and Accounting Review, 4 (1), 205-216.

Ugwunta, D. O., Ugwuanyi, B. U., and Ngwa, C. U. (2018). Effect of Audit Quality on Market Price of Firms Listed on the Nigerian Stock Market. Journal of Accounting and Taxation, 10 (6), 61-70.

Xiong, Yan. (2006). Earnings Management and Its Measurement: A Theoritical Perspective. Journal of American Academy of Business, 9 (1), 214-219.

Wang, Y. F. and Huang Y. T. (2014). How Do Auditors Increase Substantially Firm Value? International Journal of Economics and Finance, 6 (10), 76-82.

Wright, P., Mukherji, A. dan Koll, M. J. (2001). A Reexamination of Agency Theory Assumptions: Extensions and Extrapolations. Journal of Socio-Economics, 30, 413-429.

Zang, Amy Y. (2012). Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings Management. American Accounting Association, 87 (2), 675-703.




DOI: http://dx.doi.org/10.18415/ijmmu.v6i2.551

Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 International Journal of Multicultural and Multireligious Understanding

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

International Journal of Multicultural and Multireligious Understanding (IJMMU) ISSN 2364-5369
https://ijmmu.com
editor@ijmmu.com
dx.doi.org/10.18415/ijmmu
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.