Tingkat Manajemen Laba Pada Berbagai Tahap Siklus Hidup Perusahaan Di Indonesia

Abstract

This research is conducted to examine the differences in earnings management level at various company life cycle stages in Indonesia, especially for public companies which listed on Indonesia Stock Exchange from 2002 to 2016. This research uses a sample of 4,400 observational data which obtained by purposive sampling from Capital IQ. To determine the stage of the company life cycle, this research uses Dickinson's (2011) model criteria by dividing the company life cycle into five stages: introduction, growth, mature, shake-out, and decline. This research is tested with the ANOVA model and proves that there is a significant difference in the level of earnings management in the decline, introduction, and shake-out companies compared to the growth stage. However, the results of this study proves that the value of earnings management in growth and mature stage companies are not significantly difference.

Selection of profit management strategy

“…The optimal condition of the company has also contributed to the increase in the value of the return on investment expected by the shareholders). In other words, the shareholders (principals) demand that the management (agents) be able to show the company's performance that remains or even improves (Hartono et al, 2020).…”