CHAPTER V CONCLUSIONS

Transcript

1 CHAPTER V CONCLUSIONS 5.1. Conclusions This research have an objective to prove earnings management through real activities in listed Indonesian manufacturing companies. From analysis and data which presented in chapter IV, it is concluded that all three hypotheses are rejected and real activities manipulation to manage earnings in Indonesian manufacturing companies are not proved Limitations The limitation of this research is only use listed Indonesian manufacturing companies financial reports from 2009 to 2011 which must consecutively available in Indonesia stock exchange website ( Suggestions For another researchers or students who interested to prove real activities manipulation to manage earnings are suggested to: 1. Have different approach to determine suspect firm-years. 2. Develop Roychowdhury s estimation models, thus, it will fits contextually. 3. Have longer period of observation which also means more samples. 48

2 REFERENCES Annisaa rahman and Yanthi H., Earnings management melalui accruals dan real activities manipulation pada initial public offerings dan kinerja jangka panjang (studi empiris pada Bursa Efek Jakarta). The 1 st Accounting Conference, Faculty of Economic University of Indonesia. Aprilia, H., Indikasi manajemen laba melalui manipulasi aktivitas riil. Faculty of Economic - Diponegoro University. Barua, A., S. Lin, and A.M. Sbaraglia, Earnings management using discontinued operations. The Accounting Review 85 (5): Burgstahler, D., Disinformation about discontinuity evidence of earnings management. Working paper. Cohen, D.A. and Zarowin, P., Accrual-based and real earnings management activities around seasoned equity offerings. Stern School of Business New York University. Cohen, D.A., A. Dey, and T.Z. Lys, Real and accrual-based earnings management in the pre- and post- Sarbanes Oxley periods. Working paper. Cook, K.A., G.R. Huston, and M.R. Kinney, Managing earnings by manipulating production: the effects of cost structure and inventory valuation method. Working paper. Gunny, K., What are the consequences of real earnings management? Working paper. Haas School of Business University of California. Gunny, K., The relation between earnings management using real activities manipulation and future performance: evidence from meeting earnings benchmarks. Working paper. Leeds School of Business University of Colorado. Gupta, M., M. Pevzner, and C. Seethamraju, The implications of absorption cost accounting and production decisions for future firm performance and valuation. Working paper. Kim, J.B. and Sohn, B.C., Real versus accrual-based earnings management and implied cost of equity capital. Working paper. 49

3 Kothari, S.P., N. Mizik, and S. Roychowdhury, Managing for the moment: the role of real activity versus accrual earnings management in SEO valuation. Working paper. Matsuura, S., On the relation between real earnings management and accounting earnings management: income smoothing perspective. Journal of International Business Research 7 (3): Oktorina, Megawati, and Yanthi H., Analisis arus kas kegiatan operasi dalam mendeteksi manipulasi aktivitias riil dan dampkanya terhadap kinerja pasar. National Accounting Symposium XI. Roychowdhury, S., Earnings management through real activities. Journal of Accounting and Economics 42: Saputri, E.Y., Pengaruh manipulasi aktivitas riil melalui arus kas kegiatan operasi terhadap kinerja pasar dengan laba sebagai variabel intervening. Faculty of Economic and Business Diponegoro University. Scott, W.R., Financial accounting theory (6 th Edition). Prentice Hall, New Jersey. Xu, R.Z., G.K. Taylor, and M.C. Dugan, Review of real earnings management literature. Journal of Accounting Literature 26: Zang, A.Y., Evidence on trade-off between real activities manipulation and accrual based earnings management. The Accounting Review 87 (2): Zhang, W., Real activities manipulation to meet analysts cash flow forecasts. Working paper. Department of Accounting University of Texas. 50

4 APPENDICES Appendix 1: List of Companies Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN Company s Name PT Akasha Wira International Tbk. PT Argha Karya Prima Industry Tbk. PT Asiaplast Industries Tbk. PT Arwana Citramulia Tbk. PT Astra Otoparts Tbk. PT Sepatu Bata Tbk. PT Primarindo Asia Infrastructure Tbk. PT Berlina Tbk. PT Betonjaya Manunggal Tbk. PT Budi Acid Jaya Tbk. PT Cahaya Kalbar Tbk. PT Citra Tubindo Tbk. PT Duta Pertiwi Nusantara Tbk. PT Ekadharma International Tbk. PT Ever Shine Tex Tbk. PT Eterindo Wahanatama Tbk. PT Fajar Surya Wisesa Tbk. PT Goodyear Indonesia Tbk. PT Gajah Tunggal Tbk. PT Hanjaya Mandala Sampoerna Tbk. PT Champion Pacific Indonesia Tbk. PT Sumi Indo Kabel Tbk. PT Indofarma Tbk. PT Indal Alumunium Industry Tbk. PT Indofood Sukses Makmur Tbk. PT Indospring Tbk. PT Indocement Tunggal Prakarsa Tbk. PT Jakarta Kyoei Steel Works Tbk. PT Jaya Pari Steel Tbk. PT Kimia Farma Tbk. PT Karwell Indonesia Tbk. PT Kabelindo Murni Tbk. PT Kedawung Setia Industrial Tbk. PT Kedaung Indah Can Tbk. PT Kalbe Farma Tbk. PT Lion Metal Works Tbk. PT Langgeng Makmur Industri Tbk. PT Lionmesh Prima Tbk. PT Multi Prima Sejahtera Tbk. 51

5 MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR PT Multistrada Arah Sarana Tbk. PT Merck Tbk. PT Multi Bintang Indonesia Tbk. PT Mulia Industrindo Tbk. PT Mustika Ratu Tbk. PT Mayora Indah Tbk. PT Hanson International Tbk. PT Apac Citra Centertex Tbk. PT Panasia Filament Inti Tbk. PT Pan Brothers Tbk. PT Pelangin Indah Canindo Tbk. PT Prima Alloy Steel Universal Tbk. PT Prasidha Aneka Niaga Tbk. PT Sat Nusapersada Tbk. PT Pyridam Farma Tbk. PT Ricky Putra Globalindo Tbk. PT Bentoel Internasional Investama Tbk. PT Surabaya Agung Industri Pulp & Kertas Tbk. PT Schering-Plough Indonesia Tbk. PT Surya Intrindo Makmur Tbk. PT Sierad Produce Tbk. PT Sekar Laut Tbk. PT Holcim Indonesia Tbk. PT Semen Gresik Tbk. PT Selamat Sempurna Tbk. PT Suparma Tbk. PT Taisho Pharmaceutical Indonesia Tbk. PT Indo Acidatama Tbk. PT Siantar Top Tbk. PT Sumalindo Lestari Jaya Tbk. PT Mandom Indonesia Tbk. PT Surya Toto Indonesia Tbk. PT Trias Sentosa Tbk. PT Tempo Scan Pacific Tbk. PT Ultrajaya Milk Industry & Trading Company Tbk. PT Unilever Indonesia Tbk. Appendix 2: IBEIt / At-1 Firm s Code ADES AKPI APLI ARNA AUTO

6 BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX

7 PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 3: Suspect Firm-Years Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS

8 EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP

9 SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 4: CFOt / At-1 Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR

10 IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA

11 SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 5: 1 / At-1 Firm s Code ADES E E E-06 AKPI E E E-07 APLI E E E-06 ARNA E E E-06 AUTO E E E-07 BATA E E E-06 BIMA E E E-05 BRNA E E E-06 BTON E E E-05 BUDI E E E-07 CEKA E E E-06 CTBN E E E-07 DPNS E E E-06 EKAD E E E-06 ESTI E E E-06 ETWA E E E-06 FASW E E E-07 GDYR E E E-07 GJTL E E E-08 HMSP E E E-08 IGAR E E E-06 IKBI E E E-06 INAF E E E-06 INAI E E E-06 INDF E E E-08 INDS E E E-06 INTP E E E-08 JKSW E E E-05 JPRS E E E-06 KAEF E E E-07 58

12 KARW E E E-05 KBLM E E E-06 KDSI E E E-06 KICI E E E-05 KLBF E E E-07 LION E E E-06 LMPI E E E-06 LMSH E E E-05 LPIN E E E-06 MASA E E E-07 MERK E E E-06 MLBI E E E-07 MLIA E E E-07 MRAT E E E-06 MYOR E E E-07 MYRX E-06 MYTX E E E-07 PAFI E E E-06 PBRX E E E-06 PICO E E E-06 PRAS E E E-06 PSDN E E E-06 PTSN E E E-06 PYFA E-05 1E E-06 RICY E E E-06 RMBA E E E-07 SAIP E E E-07 SCPI E E E-06 SIMM E E E-05 SIPD E E E-07 SKLT E E E-06 SMCB E E E-08 SMGR E E E-08 SMSM E E E-07 SPMA E E E-07 SQBI E E E-05 SRSN E E E-06 STTP E E E-06 SULI E E E-07 TCID E E E-07 TOTO E E E-07 TRST E E E-07 TSPC E E E-07 ULTJ E E E-07 UNVR E E E-07 59

13 Appendix 6: St / At-1 Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK

14 MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 7: St / At-1 Firm s Code ADES AKPI APLI ARNA AUTO

15 BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX

16 PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 8: PRODt / At-1 Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS

17 EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP

18 SCPI SIMM E SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 9: St-1/ At-1 Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR

19 IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA

20 SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 10: St-1/ At-1 Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS

21 KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC

22 ULTJ UNVR Appendix 11: DISEXPt / At-1 Firm s Code ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI

23 LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR

24 Appendix 12: Results of regression to estimate normal CFO 2009 Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) One_At St_At CSt_At a. Dependent Variable: CFO_At Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) Asset Sales CSales a. Dependent Variable: CFO 2011 Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) Asset Sales CSales a. Dependent Variable: CFO 71

25 Appendix 13: Results of regression to estimate normal DISEXP 2009 Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) One_At St1_At a. Dependent Variable: DISEXP 2010 Model 1 Unstandardized Coefficients Coefficients a Standardized Coefficients t Sig. B Std. Error Beta (Constant) One_At St1_At a. Dependent Variable: DISEXP 2011 Model 1 Unstandardized Coefficients Coefficients a Standardized Coefficients B Std. Error Beta t Sig. (Constant) One_At St1_At a. Dependent Variable: DISEXP 72

26 Appendix 14: Results of regression to estimate normal PROD 2009 Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) One_At Sales_At CSales_At CSales1_At a. Dependent Variable: PROD_At Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) One_Asset Sales_A CSales_A CSales1_A a. Dependent Variable: PROD 2011 Coefficients a Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta (Constant) One_At S_At CS_At CS1_At a. Dependent Variable: PROD 73

27 Appendix 15: Abnormal CFO Year Firm s Code Actual CFO Normal CFO Abnormal CFO 2009 ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK

28 MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI

29 CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA E-05 76

30 RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF

31 INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN

32 STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 16: Abnormal production costs Year Firm s Code Actual PROD Normal PROD ABN_PROD 2009 ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW

33 KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR

34 2010 ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT

35 MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP SCPI SIMM E SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS

36 EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR IKBI INAF INAI INDF INDS INTP JKSW JPRS KAEF KARW KBLM KDSI KICI KLBF LION LMPI LMSH LPIN MASA MERK MLBI MLIA MRAT MYOR MYRX MYTX PAFI PBRX PICO PRAS PSDN PTSN PYFA RICY RMBA SAIP

37 SCPI SIMM SIPD SKLT SMCB SMGR SMSM SPMA SQBI SRSN STTP SULI TCID TOTO TRST TSPC ULTJ UNVR Appendix 17: Abnormal discretionary expenditure Year Firm s Code Actual DISEXP Normal DISEXP ABN_ DISEXP 2009 ADES AKPI APLI ARNA AUTO BATA BIMA BRNA BTON BUDI CEKA CTBN DPNS EKAD ESTI ETWA FASW GDYR GJTL HMSP IGAR