The impact of diversification strategy, leverage, IOS on real earnings management / MF Christiningrum Ak., CA.

-, Dr. MF Christiningrum, Ak., CA. (2020) The impact of diversification strategy, leverage, IOS on real earnings management / MF Christiningrum Ak., CA. Insight Journal : International, Refereed, Open Access, Online Journal, 6 (18). pp. 177-191. ISSN 2600-8564

Abstract

This study examines the impact of diversification strategies, the level of use of debt (leverage) and the investment opportunity set (IOS) on the performance and earnings
quality of diversified firms. Earnings quality is measured by real earnings management. Diversification level is measured by Herfindahl index and number of corporate segments. The diversification strategies in this study are divided into 2 groups, namely related and unrelated diversification. Samples of this study are 120 multi-segment companies (1,320 firm years) listed in Indonesia Stock Exchange for an 11-year period from 2002 to 2012. The results of the study also find that multi-segment strategy affect positively real earnings transactions (via discretionary costs of production and abnormal operating cash flow). The option to perform transactions in real earnings management is significantly influenced by the increase in the number of segments and the level of debts as well as the use of investment opportunities set (IOS).

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
-, Dr. MF Christiningrum, Ak., CA.
UNSPECIFIED
Contributors:
Contribution
Name
Email / ID Num.
Chief Editor
Zainon, Assoc. Prof. Dr. Saunah
UNSPECIFIED
Editor
Ismail, Dr. Noriah
UNSPECIFIED
Editor
Raja Ahmad, Assoc. Prof. Dr. Raja Adzrin
UNSPECIFIED
Editor
Soo, Assoc. Prof. Dr. Carolyn Kum Yoke
UNSPECIFIED
Editor
Kadri, Assoc. Prof. Dr. Mohd Halim
UNSPECIFIED
Editor
Mohd Ariff Albakri, Assoc. Prof. Dr. Intan Safinas
UNSPECIFIED
Editor
Shamsuddin, Assoc. Prof. Dr. Hj Amanuddin
UNSPECIFIED
Editor
Zakaria, Assoc. Prof. Dr. Nor Balkish
UNSPECIFIED
Editor
Khairani, Dr. Noor Sufiawati
UNSPECIFIED
Editor
Othman, Dr. Akmal Aini
UNSPECIFIED
Editor
Ismail, Dr. Norashikin
UNSPECIFIED
Editor
Misman, Dr. Faridah Najuna
UNSPECIFIED
Editor
Mat Kamal, Dr. Siti Nuur-Ila
UNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Industrial productivity
H Social Sciences > HG Finance > Financial leverage
Divisions: Universiti Teknologi MARA, Johor > Segamat Campus
Journal or Publication Title: Insight Journal : International, Refereed, Open Access, Online Journal
UiTM Journal Collections: UiTM Journal > INSIGHT Journal (IJ)
ISSN: 2600-8564
Volume: 6
Number: 18
Page Range: pp. 177-191
Related URLs:
Keywords: Diversification Strategies, Leverage, Investment Opportunity Set, UiTM Cawangan Johor
Date: 2020
URI: https://ir.uitm.edu.my/id/eprint/43091
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