Effect the Real Earnings Management on The Earning Quality (Study on Companies Registered in Islamic Capital Market (DES) And Non DES In Indonesia Stock Exchange, 2008 – 2012)

Moh Lutfi Saiful Arif, M Nizarul Alim, Rita Yuliana

Abstract


This study is aimed to test and provide empirical evidence of the effect of real earnings management on earnings quality in DES and Non DES firms. The study used a research sample of 990 companies listed on the Indonesia Stock Exchange in 2008-2012. This study uses Earnings Distribution Analysis (EDA) as a method of real earnings management.  The results showed that the real earning management with the method of sales manipulation, overproduction, and Discretionary Expense had no effect on earnings quality at DES companies. The same case also work for Non DES companies, where the real earning management by the method of sales manipulation and overproduction does not affect the earnings quality, while Discretionary Expense affect the eranings quality.


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References


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