THE EFFECT OF EARNINGS MANIPULATION WITH USING M-SCORE ON STOCK RETURN (Empirical Evidence in Indonesia Listed Companies on LQ45 at Indonesia Stock Exchange Period 2009-2011)

摘要

Beneish M-score model is the detection tool to help to uncover companies who are likely to be manipulating their reported earnings. Companies with a higher M-score are more likely to be manipulators. This is a probabilistic model, so it will not detect manipulators with 100% accuracy. This research has an objective to prove earnings manipulation detection using Beneish M-score model has an impact to stock return in Indonesia listed companies on LQ45 at Indonesia Stock Exhange period 2009-2011.udData used in the form of secondary data and were obtained using secondary archival data collection methods. Independent variable in this research is Earnings Manipulation which was detected using M-score Beneish Model, control variables are Leverage and Book to Market Value, and dependent variable in this research is StockudReturn that is represented by Cumulative Abnormal Return (CAR). Sample of the research used purposive sampling with goal to obtain criteria sample.udThrough the data analysis, it is concluded that the hypothesis is accepted, it means earnings manipulation with using M-score has negative influence to stock return.