HUBUNGAN ANTARA INFORMASI ASIMETRI DAN PRAKTEK PERATAAN LABA DI INDONESIA
ABSTRACT: This paper conducts
an empirical investigation about the relationship between information asymmetry
and earnings management in Indonesia. When information asymmetry is high, the
stakeholders do not have any information or resources to monitor and to know manager’s
activities which give rise to the practice of earnings management. To provide
evidence practices of earning managements and information asymmetry, this paper
uses aggregate accruals with modified Jones model and market microstructure
theory. This paper employs return volatility, trading volume and quotes price
for bid ask spread to proxy in market microstructure. This paper employs
generalized least squares with 60 firm balanced panel data in the 1994-199, and
also addresses about the effect of Indonesian financial crisis to the
relationship between information asymmetry and earnings management. We compare
sub-sample before and in the financial crisis period. Empirical result suggests
a positive relationship between information asymmetry as measured by bid ask
spreads and the level of earnings management in Indonesia. This positive
relationship is not affected by Indonesian financial crisis.
Keyword: Information
asymmetry, Earnings management, Market Microstructure, Bid Ask Spread, Modified
Jones Model, Financial Crisis
Penulis: Wasilah
Kode Jurnal: jpakuntansidd050018
