MENDETEKSI EARNINGS MANAGEMENT DAN AKUN-AKUN YANG BERPENGARUH (Studi Pada Perusahaan Yang Melakukan Aktivitas Penawaran Saham Perdana Di Bursa Efek Jakarta)

Authors

  • OTTO - BUDIHARDJO Mahasiswa Program Magister Manajemen, PPSUB
  • ALI - DJAMHURI Dosen Jurusan Akuntansi, FEUB
  • HARRY - SUSANTO Dosen Jurusan Studi Pembangunan, FEUB

Abstract

ABSTRACT

Earnings Management (EM) is an effort performed by company management as financial report issuer on purpose to influence the readers and stakeholders behavior who rely on financial reports as their primary information source, in accordance with firm managements’ direction.   EM motivations may vary, from remuneration reason, merger and acquisition event, to comply with particular requirement and regulation, to initial public offering (IPO) motivation. This study revealed EM effort in IPO event due to management motivation to demonstrate good performance to public before and during such activity.

This study took 50 IPO firms listed at Jakarta Stock Exchange (JSX) within 1998-2002. EM detection adopted Modified Jones Model as a powerful model to detect EM. Test result proved that EM was occurred on JSX IPO firms as stated by positive discretionary accruals (DA).                  Further study tried to reveal accounts used as EM tools. This study utilized linear regression with DA as fixed variable to indicate EM and predicted accounts on financial reports used as way to do EM as explanatory variables. Such explanatory variables are account receivable, account payable, inventory, accrued liability, accumulated depreciation, expenses (selling and general administrative) and other income (expense).

Test result showed that only two variables statistically significant to dependent variable, i.e. DA, they were account receivable and account payable. This result supports a study by Marquardt and Wiedman (2002) who found that EM during IPO activity was influenced by account receivable in positive direction. However, this study does not support Wiedyaningdyah (2001) who concluded IPO activity in JSX during 1994-1997 was significantly influenced by liability (leverage).

This study recommends investors or any other parties who rely on firm financial report during IPO activity on JSX to behave more conservative on net income as reported by related firms and considers account receivable and account payable as accounts need to be reviewed prior to any economical decision making related to the financial reports.

Key words: Earnings Management, Discretionary Accruals, Initial Public Offerings (IPO).

Downloads

Issue

Vol. 12 No. 4 (2009)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

    1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
cc_license_120
    1. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

  1. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).