THE ACCURACY OF EARNINGS FORECAST AND POST-IPO EARNINGS MANAGEMENT
Dezie L. Warganegara
School of Accounting & Finance BINUS Business School – BINUS University
Jl. Hang Lekir I No. 6, Jakarta, 10270.
Korespondensi dengan Penulis:
Yanthi Hutagaol: Telp. Telp. +62 21 720 2222; Fax. +62 21 720 5555
Prior studies showed that before IPO, many companies conducted earnings management in order to attract potential investors through impressive earnings figures. This study aimed to investigate the tendency of earnings management practice post – IPO. This practice of earnings management was motivated to preserve managers’ reputation in achieving their earnings forecasts. Using a total of 165 IPOs in IDX during year 2000-2010, this study employed descriptive analyses to identify the earnings management differences within the sample. A cross-section analysis was conducted to test the difference of earnings management indicator among the forecasters. Then, controlling for audit quality, ownership, firm size, and firm leverage, a regression analysis was performed to test the impact of earnings forecasts accuracy on the earnings management. The result of this research showed that there was an indication that the forecasters conducted more earnings management than the non-forecasters. The study found that forecast accuracy was significantly related to managers’ behavior to manage post-IPO earnings. Further analysis showed that optimistic forecasters tended to engage more in more earning management than conservative forecasters. The cross section analysis confirmed that optimistic earnings forecast strengthened the relationship of forecast accuracy and post-IPO earnings management, while high audit quality failed to weaken it.
Key words: earnings forecast, earnings management, initial public offering
TESTING OF PECKING ORDER THEORY THROUGH THE RELATIONSHIP: EARNINGS, CAPITAL STRUCTURE, DIVIDEND POLICY AND FIRM’S VALUE
Jurusan Manajemen Fakultas Ekonomi Universitas Merdeka Malang
Jl. Terusan Raya Dieng No.62-64 Malang, 65146.
This study aimed to test the pecking order theory through its correlation among earnings dimension, capital structure, dividend policy and firm’s value perspective. By loading the correlation between dimension one to another, it indicated that management behavior tended to retained earnings accumulation or to debt collection in financing the operation of the firm. The pecking order theory were tested when the management behavior tended to retained earnings in accumulating sources of the fund equity rather than borrowing liabilities from creditors. Therefore, rationally if the capital structure was optimum, management tended to external financing until any trade off between earnings and debt financing. Based on the testing hypothesis, it indicated that the role of capital structure dimension had significance as intervening variable between earnings dimension and firm’s value. On the other hand, the dividend policy had no significance to become intervening variable. Empirically, it could be concluded that the management behavior in Indonesia tended to leverage rather than retained earnings accumulation in supporting the pecking order theory. Furthermore, the variable had the role to differentiate the characteristic of industries represented by the capital structure dimension, especially, debt to assets and debt to equity ratio.
Key words: pecking order theory, earnings, capital structure, dividend policy, firm’s value
EFFECTS OF CORPORATE GOVERNANCE VARIABLES ON EARNINGS MANAGEMENT IN INDONESIA
Stephanus Remond Waworuntu
Marko Sebira Hermawan
Sheila Nerissa Hokardi
School of Accounting and Finance BINUS Business School, BINUS University
Jl. Hang Lekir I No.6, Jakarta, 10270.
- Korespondensi dengan Penulis:
- Stephanus Remond Waworuntu: Telp: + 62 21 720 2222, Fax: +62 21 720 5555
- E-mail: firstname.lastname@example.org
To determine the effects of corporate governance on earnings management, this paper analyzed 171 annual reports from issued 2006 to 2009 by 57 non-financial, joint stock companies implementing GCG (Good Corporate Governance) practices, which were listed on the Indonesia Stock Exchange (IDX). Six corporate governance variables (board composition, independent commissioners, separate chairman/CEO roles, audit committee, managerial share ownership, and audit quality) as well as three control variables (leverage, size, and ROA) were used. The results showed that two corporate governance variables significantly influenced earnings management practices (separate chairman/CEO roles and managerial share ownership); the other variables had no effect because these companies used GCG practices only to follow regulations rather than to monitor and control.
Key words: earnings management, working capital accruals, good corporate governance (GCG)
FAKTOR PENENTU RETURN SAHAM DENGAN PRICE TO BOOK VALUE SEBAGAI VARIABEL MODERASI
DI BURSA EFEK INDONESIA
Sri Lestari Kurniawati
Linda Purnama Sari
Nurul Hasanah Uswati Dewi
Jurusan Manajemen Fakultas Ekonomi STIE Perbanas Surabaya
Jl. Nginden Semolo No.34-36 Surabaya, 60118.
- Korespondensi dengan Penulis:
- Sri Lestari Kurniawati: Telp. +62 31 594 7151/ Fax. +62 31 593 5937
- E-mail: email@example.com
The purpose of this study was to exemine the effect of the company’s financial performance variables consisting of earning growth ratio, dividend payout ratio and size, the variable return equity price to book value as a moderating variable. The samples in this study were all companies listed on the Indonesia Stock Exchange from 2005 to 2010 by using purposive sampling with criteria that the company had a positive book value of equity during the study period. The company splitted the cash dividend and the company did not do corporate actions such as stock splits, reverse stock, stock dividend. The data used in this study were all companies listed on the Indonesia Stock Exchange from 2005 to 2010 (except for companies engaged in finance and banking) by using multiple linear regression to test the interaction or Multiple Regresion Analysis (MRA). The study found that the price to book value was not able to significantly moderate the effect of earning growth ratio, dividend payout ratio and size toward the stock return variable for the interaction test results showed the significant value was greater than interaction of alpha as 5%.
Key words: earning growth ratio, dividend payout ratio, size, stock return, price to book value
PENDEKATAN MODEL PENILAIAN DALAM PENGAMBILAN KEPUTUSAN INVESTASI SAHAM DI BURSA EFEK INDONESIA
Sri Isworo Ediningsih
Jurusan Manajemen Fakultas Ekonomi UPN “Veteran” Yogyakarta
Jl. SWK 104 (Lingkar Utara) Condongcatur Yogyakarta, 55283.
- Korespondensi dengan Penulis:
- Sri Isworo Ediningsih: Telp. /Fax.+ 62 274 487 275
- E-mail: firstname.lastname@example.org
A valuation model was a mechanism that converted a set of forecast, a series of company and economic variables into a forecast of market value for the company’s stock. The purpose of this study was to examine relevance among dividend yield, retained earnings, book value and total debt on stock price: approximation valuation model in the Indonesia Stock Exchange. Samples in this study were manufacture firms listed on the Indonesia Stock Exchange period 2008–2011 and divided dividend. The results showed that few of samples were undervalue and the others were overvalue. It meant valuation model could be applicated in the Indonesian stock exchange. By using multiple regressions, this study found that: valuation model relevans used in investment decission in manufacture firms in the Indonesia Stock Exchange could prove simultaneously dividend yield, retained earnings, book value and total debt had significant effect to stock price and partially dividend yield had no significant effect to stock price and whereas retained earnings, book value and total debt had significant effect in partial to stock price.
Key words: valuation model, dividend yield, retained earnings, book value, total debt, stock price
PENERAPAN METODE BOOTSTRAP FINANCING PADA USAHA KECIL DAN MENENGAH DI SURABAYA
Tommy C. Efrata
Program Studi International Business Management
Fakultas Ekonomi Universitas Ciputra Surabaya
Jl. Waterpark – Boulevard CitraLand, Surabaya, 60216.
Application of bootstrap financing methods had been very popular among small-scale entrepreneurs in Indonesia. This was because their access to capital was still very limited. Although bootstrap financing methods were used by many entrepreneurs, the risk factors, timing, market share, education, age, and gender was not yet known. This study aimed to determine whether there was an influence of risk, time, market share, education, age, and gender of the application of bootstrap financing methods. The sample in this study was small and medium entrepreneurs in the city of Surabaya. The sampling method used was stratified random sampling. The analysis technique used was multiple regression. The results of this study showed that the risk factors, time, age, and gender affected significantly to the application of the bootstrap method significant financing, while the market share and education had no significant effect.
Key words: bootstrap financing, small and medium enterprises, risk, education, age, gender.
DAMPAK INTERAKSI ANTARA KEBIJAKAN UTANG DAN KEBIJAKAN DIVIDEN DALAM MENILAI PERUSAHAAN
Program Pendidikan Profesi Akuntansi Universitas Kristen Maranatha
Jl. Prof. Drg. Suria Sumantri, MPH No. 65, Bandung, 40164.
- Korespondensi dengan Penulis:
- Meythi: Telp. +62 22 201 2186 Ext.510; Fax. +62 22 201 7625
- E-mail: email@example.com
This research aimed to examine and know empirical evidence of the positive effect of debt policy on firm’s value with dividend policy as moderating variable. Samples used in this research were manufacturing companies listed in Indonesia Stock Exchange in 4 years observation period (2007-2010). Total samples were 13 companies. The data were collected by using purposive sampling method. The result of moderated regression analysis (MRA) showed that debt policy did not effect firm’s value with dividend policy as moderating variable. Thus, the hypothesis of the research was not empirically supported.
Keywords: debt policy, dividend policy, and firm’s value.