Hubungan antara Kualitas Audit dengan Penentuan Discretionary Accruals pada Perusahaan yang Terdaftar di Bursa Efek Jakarta Tahun 2000-2003
Abstract
Accruals let managers communicate their private and inside information and
thereby improve the ability of earnings to reflect the underlying economic value.
However, managers could engage in aggressive reporting of accruals that can seriously
undermine the informativeness of reported earnings. Since outsiders can not directly
observe earnings, high-accrual firms face greater agency costs relative to low-accrual
firms. Auditing plays an important role in mitigating these agency costs by constraining
the opportunity of management of accruals. This study examines whether there is a
linkage between audit quality and pricing of discretionary accruals. The findings indicate
that the association between stock returns and discretionary accruals is not greater for
firms audited by Big 5 auditors than for firms audited by non-Big 5 auditors. Further,
discretionary accruals of clients of Big 5 auditors do not have greater association with
future profitability than discretionary accruals of clients non-Big 5 auditors.
Keywords: Earning Managements, Discretionary Accruals, Nondiscretionary Accruals,
Big 5, non-Big 5, Net income and Operating Cash flows
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