Author : Endri Endri
Publisher :
ISBN 13 :
Total Pages : 19 pages
Book Rating : 4.:/5 (129 download)
Book Synopsis The Factors Influencing Earnings Management and Implications for the Cost of Equity Capital by : Endri Endri
Download or read book The Factors Influencing Earnings Management and Implications for the Cost of Equity Capital written by Endri Endri and published by . This book was released on 2020 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to analyse the CGPI, audit committee, and company size on earnings management and their implications for the cost of equity capital. The research method used is panel data regression analysis, with a purposive sampling method obtained a sample of eight companies that consistently followed the Corporate Governance Perception Index (CGPI) program respectively from 2012-2016 and listed on the Indonesia Stock Exchange. The results of the research showed that in the first model partially CGPI, and the audit committee did not affect earnings management. In contrast, the size of the firm had a significant positive effect on earnings management. Furthermore, in the second model, CGPI and earnings management partially had a significant positive effect on the cost of equity capital. The audit committee did not affect the cost of equity capital, and the size of the company had a significant negative effect on the cost of equity capital. Earnings management is still quite high, and the existence of CGPI and audit committees is still less effective to oversee the actions of the earnings management. Therefore, investors need to anticipate the accrual information which is presented in financial statements because of the higher the accrual level, then the higher the cost of equity capital.