Earnings Management, Value Relevance Of Earnings and Book Value of Equity
Previous studies examining relationship between earnings management and value relevance of accounting information show that earnings management decrease value relevance of accounting information. Generally, the studies apply accruals earnings management. In contrast, the present study applies integr...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2013-11-01
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| Series: | Jurnal Akuntansi dan Auditing Indonesia |
| Online Access: | https://journal.uii.ac.id/JAAI/article/view/2254 |
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| author | Imam Subekti |
| author_facet | Imam Subekti |
| author_sort | Imam Subekti |
| collection | DOAJ |
| description | Previous studies examining relationship between earnings management and value relevance of accounting information show that earnings management decrease value relevance of accounting information. Generally, the studies apply accruals earnings management. In contrast, the present study applies integrated earnings management proxies i.e. real and accruals earnings manage-ment. Real earnings management proxies are measured by abnormal cash flow of operation, ab-normal production cost, and abnormal discretionary expenses. On the contrary, accruals earn-ings management proxies are measured by short and long term discretionary accruals matched performance.
The objective of the present study is to investigate the effect of the earnings management proxies integrated by factor analysis on value relevance of earnings and book value of equity. Re-sults of the present study show earnings and book value of equity are relevant in measuring firm market value, and integrated earnings management decrease the value relevance of earnings and book value of equity.
Keyword: integrated earnings management, value relevance of earnings and book value of equity |
| format | Article |
| id | doaj-art-17154b2a6faa499dadb645ff4e6c070b |
| institution | OA Journals |
| issn | 1410-2420 2528-6528 |
| language | English |
| publishDate | 2013-11-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Jurnal Akuntansi dan Auditing Indonesia |
| spelling | doaj-art-17154b2a6faa499dadb645ff4e6c070b2025-08-20T02:15:06ZengUniversitas Islam IndonesiaJurnal Akuntansi dan Auditing Indonesia1410-24202528-65282013-11-011422915Earnings Management, Value Relevance Of Earnings and Book Value of EquityImam SubektiPrevious studies examining relationship between earnings management and value relevance of accounting information show that earnings management decrease value relevance of accounting information. Generally, the studies apply accruals earnings management. In contrast, the present study applies integrated earnings management proxies i.e. real and accruals earnings manage-ment. Real earnings management proxies are measured by abnormal cash flow of operation, ab-normal production cost, and abnormal discretionary expenses. On the contrary, accruals earn-ings management proxies are measured by short and long term discretionary accruals matched performance. The objective of the present study is to investigate the effect of the earnings management proxies integrated by factor analysis on value relevance of earnings and book value of equity. Re-sults of the present study show earnings and book value of equity are relevant in measuring firm market value, and integrated earnings management decrease the value relevance of earnings and book value of equity. Keyword: integrated earnings management, value relevance of earnings and book value of equityhttps://journal.uii.ac.id/JAAI/article/view/2254 |
| spellingShingle | Imam Subekti Earnings Management, Value Relevance Of Earnings and Book Value of Equity Jurnal Akuntansi dan Auditing Indonesia |
| title | Earnings Management, Value Relevance Of Earnings and Book Value of Equity |
| title_full | Earnings Management, Value Relevance Of Earnings and Book Value of Equity |
| title_fullStr | Earnings Management, Value Relevance Of Earnings and Book Value of Equity |
| title_full_unstemmed | Earnings Management, Value Relevance Of Earnings and Book Value of Equity |
| title_short | Earnings Management, Value Relevance Of Earnings and Book Value of Equity |
| title_sort | earnings management value relevance of earnings and book value of equity |
| url | https://journal.uii.ac.id/JAAI/article/view/2254 |
| work_keys_str_mv | AT imamsubekti earningsmanagementvaluerelevanceofearningsandbookvalueofequity |