This study investigates how the capital market response to a variety of earnings management tools i.e., accrual-based earnings management, real transaction activities, and strategic revenue recognition. We measure the market response to the information content of earnings by the earnings response coefficient (ERC). By using pooled-OLS regression from 748 firm-years data of public listed companies on the Indonesian Stock Exchange (IDX) in 2004-2009, we find some evidence of a negative association between earnings response coefficients and information content of earnings that contained earnings management. Our study find that real transactions earnings management in operating activities has negative association with earnings response coefficient, but we do not find any evidence from the other earnings management tools. The findings of this study imply that the market participants are able to capture a certain kind of earnings management behaviour that may reduce the earnings response coefficient. Keywords:Real transaction activities; accrual earnings management; strategic revenue recognition ABSTRAK Penelitian ini bertujuan untuk mengetahui bagaimana respon pasar terhadap berbagai cara dalam melakukan manajemen laba seperti manajemen laba berbasis akrual, manajemen laba melalui aktivitas riil dan manajemen laba melalui strategi pengakuan pendapatan. Respon pasar terhadap kandungan informasi laba diukur dengan earning response coefficient (ERC). Data diolah menggunakan pooled-OLS untuk 748 pengamatan yang berasal dari perusahaan-perusahaan yang terdaftar di Bursa Efek