This study investigates 149 Initial Public Offering (IPO) in Jakarta Stock Exchange (JSX) from 1994 up to 2003. In general, this study is aimed to prove whether firm s opportunistically manage earnings in the period o f IPO. Specifically this study examines the effect o f earnings management on firm s ' long term performance and provides explanation as well as comparison o f several measures o f earning management and long-term performance. In this study, earnings management is measured by two accrual variables which are discretionary current accruals and discretionary long term accruals and by two var iables o f discretionary real activities through Cash Flow from Operation (CFO) and Cost o f Goods Sold (COGS). In addition, the underperformance phenomenon is measured by market performance (Cumulative Abnormal Return and Buy and Hold Return method) fo r periods 1 years after IPO, 2 years after IPO and 3 years after IP O ' s date. The hypothesis testing used in this thesis are t test and multiple regression models. The results show (1) earnings management is conducted through accruals but not through real activities manipulation and (2) earnings management affects stock performance 1 year after IPO. Finally this research finds that there is no difference in stock performance fo r IPO issuers with aggressive and conservative earnings management.

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Research & Development (R&D) is one of significant firms’ activities that is expected to enhance firms’ future value. This paper examines the relationship between R&D with firm’s operation and market performance. The sample used is 106 firm years from 32 non-finance firms that listed in Indonesia Stock Exchange (IDX) and report R&D expenditure during period 2004-2007. Two research hypotheses are developed and tested using a multiple regression model. The findings signify that all sample firms have reported their R&D activities accordingly to the applied accounting standard. However, the hypothesis testing results shows that there is no relationship between R&D and firm’s operation and market performance. These findings imply that R&D activities in Indonesian firms are not yet perceived as an important element in firms’ value added chain.

Mutual Fund (Reksa Dana) can be used as one of the investment alternatives besides personal saving, time deposit, shares and bond. Mutual fund is an investment that has a form as a collective contract investment and managed by the profesionals. From various mutual funds in Indonesia, the investor should choose the mutual fund that they want to invest in. The problem is the type of indicators that the investor can use to choose the mutual funds. The writer did research with 16 equity-based mutual funds in Indonesia with the period from December 31, 2002 to December 31, 2007. Firstly, the writer measures all mutual funds according to their performance, which is based on raw return, Sharpe, Treynor, Jensen and Sortino. Mutual funds with above average performance are considered as superior mutual funds. Afterwards, whether there is any consistency in the performance is checked by using probabilistic method and Chi Squared test. Then, ranking will be made started with the best to the worst mutual funds. The candidates for the best mutual funds are the mutual funds that achieve the superior level at least three times during the six years of the research period. The best mutual fund is the mutual fund which obtains the highest rank according to the five methods above. Probabilistic method indicates a high consistency level with an average of 71.50%. This result is supported by the chi squared test, where the hyphotesis that stated that there is a consistency between mutual fund performances can be proven. The final result is the rank of equity-based mutual funds in Indonesia. The following is the rank of the mutual funds with superior performance: Fortis Pesona, Schroder Prestasi Plus, Dana Reksa Mawar, Fortis Ekuitas, Trim Kapital, Panin Dana Maksima, Si Dana Saham, Rencana Cerdas dan Bahana Dana Prima.