This study aims to test and analyze real earnings management through cash flow from operations, production costs and discretionary expenses as well as accrual-based earnings management in the period before and after convergence of IFRSs. In this study using the financial statements of 83 manufacturing companies in Indonesia Stock Exchange. In the period before convergence of IFRSs used the financial statements of 2009, 2010 & 2011 and in the period after convergence of IFRSs used the financial statements of 2014, 2015 & 2016. The results show evidence of a decline in real earnings management through cash flow from operations, production costs and discretionary expenses as well as accrual-based earnings management after convergence of IFRSs. Another result shows that decline of total real earnings management is greater than decline of accrual-based earnings management after convergence of IFRSs.
Baiga, M., and Khan, S. A. (2016). Impact of IFRS on Earnings Management: Comparison of Pre-Post IFRS Era in Pakistan, Procedia - Social and Behavioral Sciences, 230: 343-350.
Braam, G., Nandy, M., Weitzel, U., and Lodh, S. (2015). Accrual-based and Real Earnings Management and Political Connections, The International Journal of Accounting, 50: 111-141.
Brad, L., Dobre, F., Turlea, C., and Brasoveanu, I. V. (2014). The Impact of IFRS Adoption in Romania upon The Earnings Management of The Bucharest Stock Exchange Entities, Procedia Economics and Finance, 15: 871-876.
Cohen, D. A., Dey, A., and Lys, T. Z. (2008). Real and Accrual-Based Earnings Management in The Pre-and postSarbanes–Oxley Periods, The Accounting Review , 83(3): 757–787.
Cupertino, C. M., Martinez, A. P., and Costa, N. C. A. (2015). Earnings Manipulations by Real Activities Management and Investors’ Perceptions, Research in International Business and Finance, 34: 309-323
Dechow, P. M., Sloan, R., and Sweeney, A. (1995). Detecting Earnings Management, The Accounting Reviews, 70: 193-225.
Doukakis, L. C. (2016). The Effect of Mandatory IFRS Adoption on Real and Accrual-based Earnings Management Activities, Journal of Accounting and Public Policy, 33: 551-572.
Enomoto, M., Kimura, F., and Yamaguchi, T. (2015). Accrual-Based and Real Earnings Management: An International Comparison for Investor Protection, Journal of Contemporary Accounting & Economics, 11: 183-198.
Ewert, R., and Wagenhofer, A. (2005). Economic Effects to Tightening Accounting Standards to Restrict Earnings Management, The Accounting Review, 80(4): 1101-1124.
Kurniawati, L., and Rahmawati. (2014). Pengaruh Adopsi IFRS terhadap Manajemen Laba pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia, Jurnal Akuntansi dan Auditing - Universitas Diponegoro Semarang, 11(1): 120-133.
Pelucio-G, M. C., Geron, C. M. S., Grecco, G. B., and Lima, J. P. C. (2014). The effect of IFRS on Earnings Management in Brazilian Non-Financial Public Companies, Emerging Markets Review, 21: 42-66.
Rahman, A., and Hutagaol, Y. (2008). Manajemen Laba melalui Akrual dan Aktivitas Real pada Penawaran Perdana dan Hubungannya dengan Kinerja Jangka Panjang (Studi Empiris pada BEJ), Jurnal Akuntansi dan Keuangan Indonesia – Universitas Indonesia, 5(1): 1-29.
Roychowdhury, S. (2006). Earnings Management through Real Activities Manipulation, Journal of Accounting and Economics, 42: 335–370.
Sanjaya, I. B. W., and Ulupui, I. G. K. A. (2016). Penerapan International Financial Reporting Standard terhadap Manajemen Laba di Indonesia, Jurnal Akuntansi – Universitas Udayana Bali, 17(1): 771-797.
Sugiyono. (2014). Cara Mudah Menyusun: Skripsi, Tesis dan Disertasi, Bandung: Alfabeta.
Widyawati, A. A., and Anggraita, V. (2013). Pengaruh Konvergensi, Kompleksitas Akuntansi, dan Probabilitas Kebangkrutan terhadap Timeliness dan Manajemen Laba, Jurnal Akuntansi dan Auditing Indonesia – Universitas Islam Indonesia Yogyakarta, 17(2): 135-154.
Zéghal, D., Chtourou, S., and Sellami, Y. M. (2011). An Analysis of The Effect of Mandatory Adoption of IAS/IFRS on Earnings Management, Journal of International Accounting, Auditing and Taxation, 20: 61-72.
In-Text Citation: (Mas, Diantimala, & Saputra, 2018)
To Cite this Article: Mas, D., Diantimala, Y., & Saputra, M. (2018). Comparative Analysis of Real Earnings Management and Accrual-based Earnings Management before and after Convergence of IFRSs in Indonesia. International Journal of Academic Research in Business and Social Sciences, 8(3), 46–55.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
