Earnings Management through Real Activities and Its Impact on Future Operating Performance: Earnings Management through Real Activities and its Impact on Future Operating Performance

摘要

This study examines the effect of earnings management through real activities on future operating performance. This study uses data of firms listed in Indonesia Stock Exchange in the period of 2012 to 2013. The analysis technique employed in this study is multiple linear regression analysis and processed using STATA/MP 14.2. The results show that real activities on earnings management has positive and significant association with future operating performance. This finding indicates that the earnings management through real activity has occurred on production costs and operating cash flows as a signal that company will have better future operating performance.