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Is Earnings Management Informational or Opportunistic? Evidence from ASEAN Countries

Gadjah Mada International Journal of Business

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Field Value
 
Title Is Earnings Management Informational or Opportunistic? Evidence from ASEAN Countries
 
Creator Wardani, Dewi Kusuma
Kusuma, Indra Wijaya
 
Description This study explores the informational and opportunistic characteristics of earnings management in ASEAN countries. Earnings management has an impact on the profitability of the companies. A positive relation between earnings management and future profitability reveals that earnings management is informational. However, negative a relation between earnings management and future profitability indicates that earnings management is opportunistic. This study uses data from the OSIRIS database. Four hundred and eighty five (485) companies from the Philippines, Indonesia, Malaysia, Singapore, and Thailand are used as a sample. This study focuses on 2 types of earnings management: (1) accrual earnings management and (2) real earning management. Modified Jones model is used for the accrual earnings management. Real earnings management follows Roychowdury (2006). The results show that the characteristics of earnings management are not consistent. Real earnings management is informational in Thailand, but opportunistic in Indonesia. Accruals earnings management is informational in the Philippines, but opportunistic in Malaysia. Country factors such as culture may explain the inconsistency of the results in ASEAN.Keywords: accruals earnings management; ASEAN countries; future profitability; informational; opportunistic; real earnings management
 
Publisher Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
 
Date 2012-01-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://jurnal.ugm.ac.id/gamaijb/article/view/5437
10.22146/gamaijb.5437
 
Source Gadjah Mada International Journal of Business; Vol 14, No 1 (2012): January - April; 61 - 75
2338-7238
1411-1128
 
Language eng
 
Relation https://jurnal.ugm.ac.id/gamaijb/article/view/5437/4417