PENJELASAN TEORI PROSPEK TERHADAP MANAJEMEN LABA
ABSTRACT: This article
provides a clearer explanation of the use of prospect theory to explain
earnings management. Prospect theory explains how managers use income increasing
earnings management to avoid small loss by reporting a small profit, because if
company has a small loss, investors will perceive marginal disutility. If
man-agers can use earnings management to a report small profit, investors will
get marginal utility. Prospect theory also explains how managers use income
decreasing earnings management to (1) avoid big profit by reporting a small
profit because if a manager reports a small profit in a few periods, total
utility which perceived by investors is higher than if a manager reports a big
profit in a certain period and no profit in other periods, or (2) avoid a small
loss by reporting a big loss because if a manager report a small loss in a few
periods, total disutility which perceived by investors is higher than if a
manager reports a big loss in a certain period and then reports no loss in
other periods.
Key words: prospect theory,
earnings management
Penulis: Eko Widodo Lo
Kode Jurnal: jpmanajemendd050015
Pesan jurnal yang anda butuhkan disini.... >>> KLIK DISINI <<<
