Leverage, Dividends, and Real Earning Management (Empirical Study on Manufacturing Companies on the Indonesia Stock Exchange)
Amount: Leverage, Dividends, and Real Earning Management (Empirical Study on Manufacturing Companies on the Indonesia Stock Exchange)
Author: Idzal Dwi Nantyah
Item Type: Thesis
Memberships: Master of Management Science Study Program, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia
Publisher: Airlangga University
Abstract
The purpose of this study is to examine and analyze the difference between the effect of leverage on real earning management and the effect of dividends on real earning management by using three measurements, namely abnormal cash flow, abnormal production cost, and abnormal discretionary expenses. This research is a quantitative research. This study uses research samples from manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2013-2017 using a purposive sampling method. The data analysis technique uses multiple linear regression with statistical software tools IBM SPSS statistics 21. The results of this study indicate that leverage has a positive effect on abnormal cash flow, leverage has a negative effect on abnormal production costs, leverage has a negative effect on abnormal discretionary expenses. Dividends have a positive effect on abnormal cash flow, abnormal production costs, and abnormal discretionary expenses. Leverage is more appropriate to be a control to limit managers to take earnings management actions than dividends.
Keywords :Leverage, Dividend, Abnormal Cash Flow, Abnormal Production Cost, Abnormal Discretionary Expenses, Real Earning Management
