Earnings Management: Real Activity Manipulations That Affect Cash Flow From Operations (The Case of Companies Listed in Jakarta Stock Exchange)

Abstract

Adriana, Anissa [2006]. Earnings Management: Real Activity Manipulation that Affect Cash Flow from Operation (The Case of Companies Listed in Jakarta Stock Exchange). Accounting Department. International Program. Faculty of Economics. Universitas Islam Indonesia This research basically is talking and discuss about earnings management in specific things in which in the process of doing earnings management by real activity manipulation. Real activities manipulation is characterized by two features that are departures from normal operational practices in which these departures are by potentially detrimental to firm value and a desire to mislead at least some stakeholders to believe certain financial reporting goals have been met in the normal course ofoperation. Real activity manipulation can be done by three things that are sales manipulation - offering price discount, overproduction, and reducing ofdiscretionary expenses. Thebasic objectives of this research is examine Indonesian companies that engage in real activity manipulation that affected directly to the cash flow from operations and examine to what real activity manipulation might done according to the characteristic ofthe firm. However, the result ofthis research Is that suspect companies in this research do not have any significant prove of engage in real activity manipulation that affected directly to the cash flow from operations.