Authors :

Abstract:

The purpose of this study is to examine the relationship between corporate reputation and earnings quality. This study uses a sample of 1,092 firm year observations from 273 firm listed company on the Indonesia stock exchange from 2013 to 2016, except for the financial industry. We use a public measure, "100 top issuers" by investor magazine, as a proxy for corporate reputation, while earnings quality is measured by calculating the absolute value of discretionary accrrome. Growth of Assets, Firm Size, Leverage and Profitability are used as control variables in this study. Multiple Linear Regression Analysis is used to test the research hypothesis. The results of the regression in this study indicate that corporate reputation has a positive and significant relationship with earnings quality. This indicates that a reputable company will be encouraged to produce in an effort in an effort for the company to maintain investor confidence in the Company, so that the Company's image and reputation can be maintained. Earnings Management in this study was calculated using cross-sectional methods instead of time series methods. Cross-sectional method is a method by company financial data of a company or other similar industries, whereas the time series method uses the comparison of financial data in a period with the previous period by analyzing what's happened happened to the trend figure.

Sources :

https://www.emeraldinsight.com/doi/abs/10.1108/AJAR-2017-02-02-B001