Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms
The purpose of this study is to examine whether there is a notable relationship between bankruptcy risk measured by Altman Z-Score and earnings management in Indonesia. While many prior studies have analyzed the relevance of financial distress (which is often associated with bankruptcy risk) towards...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EDP Sciences
2023-01-01
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| Series: | E3S Web of Conferences |
| Online Access: | https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/63/e3sconf_icobar23_02100.pdf |
| _version_ | 1797673561801883648 |
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| author | Nareswara Fathullah Aryo Dewiyanti Silvia |
| author_facet | Nareswara Fathullah Aryo Dewiyanti Silvia |
| author_sort | Nareswara Fathullah Aryo |
| collection | DOAJ |
| description | The purpose of this study is to examine whether there is a notable relationship between bankruptcy risk measured by Altman Z-Score and earnings management in Indonesia. While many prior studies have analyzed the relevance of financial distress (which is often associated with bankruptcy risk) towards earnings management, there only exist few studies, to the best of authors’s knowledge, that specifically uses bankruptcy risk itself as one of possible influencing factors on earnings management. Regression analysis is performed on the financial data of firms listed in Indonesia Stock Exchange (IDX), with the final sample comprised of 404 firm-year observations. Using bankruptcy risk as the independent variable, the result indicates that there is no significant relationship between bankruptcy risk and earnings management, which is the similar conclusion that had been reached by few prior studies on the same topic. |
| first_indexed | 2024-03-11T21:46:10Z |
| format | Article |
| id | doaj.art-0869bfc73cbb4e56b1c2177feeefa44f |
| institution | Directory Open Access Journal |
| issn | 2267-1242 |
| language | English |
| last_indexed | 2024-03-11T21:46:10Z |
| publishDate | 2023-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | E3S Web of Conferences |
| spelling | doaj.art-0869bfc73cbb4e56b1c2177feeefa44f2023-09-26T10:11:44ZengEDP SciencesE3S Web of Conferences2267-12422023-01-014260210010.1051/e3sconf/202342602100e3sconf_icobar23_02100Bankruptcy Risk and Its Effect on Earnings Management of Indonesian FirmsNareswara Fathullah Aryo0Dewiyanti Silvia1Accounting Department, School of Accounting, Bina Nusantara UniversityAccounting Department, School of Accounting, Bina Nusantara UniversityThe purpose of this study is to examine whether there is a notable relationship between bankruptcy risk measured by Altman Z-Score and earnings management in Indonesia. While many prior studies have analyzed the relevance of financial distress (which is often associated with bankruptcy risk) towards earnings management, there only exist few studies, to the best of authors’s knowledge, that specifically uses bankruptcy risk itself as one of possible influencing factors on earnings management. Regression analysis is performed on the financial data of firms listed in Indonesia Stock Exchange (IDX), with the final sample comprised of 404 firm-year observations. Using bankruptcy risk as the independent variable, the result indicates that there is no significant relationship between bankruptcy risk and earnings management, which is the similar conclusion that had been reached by few prior studies on the same topic.https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/63/e3sconf_icobar23_02100.pdf |
| spellingShingle | Nareswara Fathullah Aryo Dewiyanti Silvia Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms E3S Web of Conferences |
| title | Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms |
| title_full | Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms |
| title_fullStr | Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms |
| title_full_unstemmed | Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms |
| title_short | Bankruptcy Risk and Its Effect on Earnings Management of Indonesian Firms |
| title_sort | bankruptcy risk and its effect on earnings management of indonesian firms |
| url | https://www.e3s-conferences.org/articles/e3sconf/pdf/2023/63/e3sconf_icobar23_02100.pdf |
| work_keys_str_mv | AT nareswarafathullaharyo bankruptcyriskanditseffectonearningsmanagementofindonesianfirms AT dewiyantisilvia bankruptcyriskanditseffectonearningsmanagementofindonesianfirms |