| dc.description.abstract | The balance sheet accumulates the effects of previous accounting choice, so that level of net asset partly reflects previous the extent of previous earnings management. Earnings management represent the efforts undertaken by managers or preparers of financial statements in an attempt to affect accounting information, especially earnings, for his/her own and/or company's benefits. Theoretically, there are many ways or methods available for managers or preparers of financial statements to affect reported earnings. The manager opportunist attitude done by cleverness of manager in mastering information compared to other party.
This research has the purpose to examine the balance sheet existence as an earnings management constraint. This research use the secondary which it is taken from the quarterly financial statement of manufacture companies listed on Jakarta Stock Exchange (JSX) during 2004-2005 periods. This research used 68 manufacture companies as its sample. Then, the obtained data has regression analyzed by Generalized Ordered Logit Model.
The Output of regression indicates that there is significant relation between net assets with the earnings surprise. The reporting earnings surprise smaller negative or larger positive decrease when the value of net asset is overstated. So, it can be concluded that balance sheet is as an earnings management constraint. | en_US |
