Title: Leverage, Dividends, and Real Earnings Management (An Empirical Study of Manufacturing Companies on the Indonesia Stock Exchange)
Author: Idzal Dwi Nantyah
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The purpose of this study is to examine and analyze the differences between the effects of leverage on real earnings management and the effects of dividends on real earnings management using three measurements: abnormal cash flow, abnormal production costs, and abnormal discretionary expenses. This study is a quantitative study. The sample of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2013-2017 period was purposive sampling. The data analysis technique used multiple linear regression with the help of IBM SPSS Statistics 21 statistical software. The results of this study indicate that leverage has a positive effect on abnormal cash flow, a negative effect on abnormal production costs, and 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 as a control to limit managers from engaging in earnings management actions than dividends.
Keywords: Leverage, Dividends, Abnormal Cash Flow, Abnormal Production Cost, Abnormal Discretionary Expenses, Real Earning Management