Open AccessReaksi Pasar atas Manajemen Laba
Author(s) -
Fery Friyo Handoko,
Mu’minatus Sholichah
Publication year - 2019
Publication title -
journal of islamic accounting and tax
Language(s) - English
Resource type - Journals
eISSN - 2621-5063
pISSN - 2620-9144
DOI - 10.30587/jiatax.v1i2.987
Subject(s) - earnings management , accrual , accounting , financial statement , business , incentive , population , earnings response coefficient , capital market , sample (material) , nonprobability sampling , audit , earnings , actuarial science , empirical evidence , accounting information system , empirical research , principal–agent problem , economics , finance , microeconomics , statistics , chemistry , demography , chromatography , mathematics , sociology , philosophy , epistemology , corporate governance
This research examine the capital market reaction on earnings management. Agency conflict represented by information asymetry caused earnings management. Managers have incentive to play accounting method and estimate to gain certain amount of earnings. Hereafter, investor have interest regarding their invesment decision. They rely on accounting information that represented in financial statement.Based on premise in Signalling Theory, we then hypothesized that investor would response any information addressed to them.Sample and population that used to test hypothesis taken from listed manufacturing company during 2015-2017. We documenting data from financial statement items. We obtain 40 manufacturing company that comply to purposive sampling requirement. We use simple regression to do data analysis. We found the empirical evidence that market reac the earnings management indication. There is empirical fact that cummulative abnormal return decreas when determinate by discretionarry accruals. This research conclude that market reacting the earnings management indication generally.