INDIKASI EARNINGS MANAGEMENT PADA INITIAL PUBLIC OFFERING

INDIKASI EARNINGS MANAGEMENT PADA INITIAL PUBLIC

OFFERING

Moh. Adi Irawan

Tatang Ary Gumanti, M.Bus.Acc., Ph.D.

Universitas Jember

Abstract

Earning Management is a phenomenon which enrichs accounting development. The aim of this research is to investigate whether companies which had gone public in 2000−2005 did earnings management in its Initial Public Offering which 61 companies (bank subsector excluded) is selected as sample. The research is combining method of Holland and Ramsay (2003); and Irawan and Gumanti (2008) in testing earnings management by analyzing earnings (NPAT) and cash flow operation (NCFO) behavior surround IPO. The assumption is the managers trying to manage earnings in prior and after go public periods to meet earning benchmark for maximizing offering price, because high offering price means high income for issuers.

The result of this research divides in two periods. In the periods priors go public, neither change in NPAT nor NCFO significant in statistic. After go public, even though the movement of NPAT significant in statistic, the movement of NCFO is not significant in statistic. All in all, the research did not found any evidences that those companies manage earnings in the periods priors go public and after go public periods.

Keywords: Earnings management, IPO, Earnings, Cash flow operation, Benchmark.

Area Study: Akuntansi Keuangan dan Pasar Modal (AKPM)

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