Widyaningsih Azizah


This research was carried out to test trend of earnings management in Indonesia. By understanding the trend of earnings management, it can be found out what scheme of earnings management practice in Indonesia. The sample used were 31 (thirty one) non financial, hotel, travel, transportation and real estate companies that listed in Indonesia Stocks Exchange from 1991 to 2014. The time of observation was from 1993 to 2013. Research model was using multiple regression method. The result showed there was no trend increasing of accrual earnings management during research period. Practice of accrual earnings management in Indonesia that tends fluctuate shows there is a tradeoff or substitution of earnings management technique from accrual to real earnings management. 

Full Text:


Article Metrics

Abstract views : 0| PDF views : 0


Bartov, E., D. Givoly, and C. Hayn. (2002). The Rewards to Meeting or Beating Analysts’ Forecasts. Journal of Accounting and Economics 33: 173-204.

Behn, B., A. Nagy, and R. Riley. (20020. The Association between Stock/Compensation Mix and Earnings Usefulness. Unpublished, University of Tennessee, John CarrollUniversity and West Virginia University

Beatty, A, Chamberlain, S and. &Maglolo, J. (1995), Managing financial reports of commercial banks: the impact of taxes, regulatory capital, and earnings, Journal of Accounting Research, 33 (2): 231-262

Bhattacharya, U., H. Daouk, and M. Welker. (2003). The World Pricing of Earnings Opacity. The Accounting Review 78: 641-678.

Bhojraj, S., Hribar, P., &Picconi, J. M. (2009). Making Sense of Cents: An Examination of Firms that Marginally Miss or Beat Analyst Forecasts. The Journal of Finance, 64, 2361-2388

Brown, L. D. (2001). A Temporal Analysis of Earnings Surprises: Profits versus Losses.

Journal of Accounting Research 39: 221-241.

Brown, L. D., and M. L. Caylor. (2005). A Temporal Analysis of Earnings Management Thresholds. The Accounting Review, 80 (2): 423-440

Burgstahler, D., and M. Eames. (2003). Earnings Management to Avoid Losses and Small Decreases: Are Analysts’ Fooled? Contemporary Accounting Research 20: 253–294

Bushee, Brian J. (1998). The Influence of Institutional Investors on Myopic R&D Investment Behavior.The Accounting Review 73 (3): 305-333

Cohen, Daniel A., AiyeshaDey, and Thomas Z. Lys. (2008). Real and Accrual- based Earnings Managemnent in the Pre- and Post- Sarbanes Oxley Periods. The Accounting Review, 83(3): 757-787

Cheng,Shijun. (2004). R&D Expenditures and CEO Compensation. The Accounting Review79 (2): 305-328

Dechow, Patricia M., Richard G. Sloan. (1991). Executive incentives and the horizon problem: An empirical investigation. Journal of Accounting and Economics 14 (1): 51-89

Dechow, P., L. Myers, and C. Shakespeare. (2010). Fair value accounting and gains from asset securitizations: A convenient earnings management tool with compensation side-benefits. Journal of Accounting and Economics, 49 (1-2): 2-25

Fields, Thomas D, Thomas Z and Linda Vincent. (2001). Empirical Research on AccountingChoice. Journal of Accounting and Economics 31: 255-307

Gaver, Jeniffer.J, and Jeffrys S, Paterson. (1999). Managing Insurance Company Financial Statements to Meet Regulatory and Tax Reporting Goals. Contemporary Accounting Research, 16 (2): 207-241

Graham, Jhon R., Campbell R. Harvey, and ShivaRajgopal. (2005). The Economic Implications of Corporate Financial Reporting. Journal of Accounting and Economics,40: 3-73.

Gul, F. A., and L. K. Wah. (2002). Insider Entrenchment, Board Leadership Structure and Informativeness of Earnings. Working Paper, City University of Hong Kong

Hand, J. (1989). Did firms undertake debt equity swap for an accounting paper profit or true financial gain? The accounting Review, 64 (4): 47-89

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

Herrmann, T., T.Inoue, and W.B. Thomas, (2003). The Sale of Assets to ManageEarnings in Japan. Journal of AccountingResearch, 41 (1): 89-108

Hribar, P., N.T. Jenkins, and W. B. Johnson. (2006). Stock Repurchases as An

EarningsManagementDevice. Journal of Accounting and Economics 41:


Hunt A., Mayer S.E., and Shevlin T. (1996). Managing Interacting Accounting Measures to Meet Multiple Objective: A Study of Lifo Firms. Journal of Accounting and Economics 21: 339-374

Jain, P. K., and Z. Rezaee. (2006). The Sarbanes-Oxley Act of 2002 and Capital-Market Behavior: Early Evidence. Contemporary Accounting Research 23 (3): 629-654

Jackson, S.B. and W.E. Wilcox, (2000). Do managers grant sales price reductions to avoid losses and declines in earnings and sales? Quarterly Journal of Business and Economics 39 (4): 3-20

Leuz, Christian.,Dhananjay, Nanda, dan Peter D. Wysocki. (2003). Earnings Management and Investor Protection: An International Comparison. Journal of Finance Economics,69: 505-527.

Lopez, T. J., and L. L. Rees. (2001). The Effect of Meeting Analyst Forecasts and Systematic Positive Forecast Errors on the Information Content of Unexpected Earnings. Working Paper, Georgia State University.

Matsumoto, D. (2002). Management Incentives to Avoid Negative Earnings Surprises. TheAccounting Review 77: 483 – 514.

Patsuris, Penelope. (2002). Corporate Scandal Sheet. Forbes 26 August 2002

Pincus, M. and S. Rajgopal, (2002). The interaction between accrual management and hedging: evidence from oil and gas firms. TheAccounting Review 77: 127-160.

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

Schipper, K. (1989). Commentary on EarningsManagement. Accounting Horizons 3: 91-102.

Yeo, G.H.H., P.M. S. Tan, K. W. Ho and S. Chen. (2002). Corporate Ownership Structure and the Informativeness of Earnings. Journal of Business, Finance & Accounting 29:1023-1046.

Zhang, Amy Y. (2007). Evidence on The Tradeoff between Real Manipulation and Accrual manipulation. Unpublished, Hong Kong University of Science and Technology - Department of Accounting



  • There are currently no refbacks.

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

 Creative Commons License

Media Riset Akuntansi, Auditing & Informasi Creative Commons Attribution-NonCommercial 4.0 International License.