PENGARUH ASIMETRI INFORMASI DAN UKURAN PERUSAHAAN TERHADAP INDIKASI MANAJEMEN LABA (Studi Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2007–2010)

Abstract

PSAK provide a variety of alternative methods for preparing the financial statements. Therefore, the phenomenon of selecting the methods can be used by management to conduct earnings management measurement. The different interests between principals and agents lead to asymmetry information. Thus, the presence of asymmetry information causes an indication of earnings management. In addition, the higher asymmetry information occurs, the greater the tendency that the company (SIZE) is not effectively monitored. This research designed to examine and analyze the effect of asymmetry information and company size on earnings management. Earnings management variable is the dependent variable which is measured using discretionary accruals. The independent variable used asymmetry information which is measured using adjspread, while the company size is measured using the natural logarithm of total assets. In addition, there are two control variables used in this research such as variance between cash flow (CFVAR) and sales growth which is measured by the change of net income. The results showed that the first and second hypotheses were rejected. However, the results of this research indicate that the company size, the variance of cash flow and the sales growth have an effect on earnings management, although the company size and the variance of cash flows have negative direction. In contrary, asymmetry information has no effect on earnings management. Thus, company size, variance of cash flow, and sales growth have an important role for management to conduct an indication of earnings management so it is expected for the company to continue the supervision to avoid any indications of the earnings management.