PENGARUH SISTEM HUKUM COMMON LAW DAN CIVIL LAW TERHADAP MANAGEMEN LABA

• Main Authors: , RINA MARLIANA, S.PD, , Prof. Dr. Slamet Sugiri, MBA
• Format: Theses and Dissertations NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 2011
• Subjects: ETD
• Online Access: https://repository.ugm.ac.id/89492/; http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=51957
• Institution: Universitas Gadjah Mada

The objective of this study is to examine empirically the influence of common law legal system and civil law against discretionary revenue (earnings management proxy). The motivation of this research is to reexamine the influence of the legal system on earnings management with different earnings management methods. The reason the authors are interested in reviewing the legal system on earnings management is to get empirical evidence of the influence of the legal system on earnings management with discretionary revenue measurement method (Stubben, 2010). Previous studies using the model of aggregate accruals and real earnings management model as a measure of earnings management variables. This is different from previous research because specific uses revenue as a measure of discretionary accruals earnings management. The population in this study were all manufacturing companies listed on stock exchanges of Australia, the UK (common law) and France, Germany, Finland (Civil law). Study period was from 2007 until 2010. The number of overall sample is 1.564 observations. The hypothesis states that earnings management with a specific method of accrual on companies in countries with common law legal system is lower than firms in countries with civil law legal system. After testing for earnings management with data pooled times series cross-section, is found supported the hypothesis. Legal system that causes the high and low investor protection of a country influence the selection of earnings management methods. Investor protection is high (common law), earnings management using accruals manipulation is lower compared with low investor protection (civil law).