The Effects of Earnings Quality, Conservatism, and Real Earnings Management on the Company's Performance and Information Asymmetry as a Moderating Variable

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Abstract

This study investigates the role of information asymmetry as a moderating variable to strengthen or to weaken the effects of earnings quality, conservatism, and real earnings management on the company's performance. This study utilized data from Indonesia and Singapore for years 2004 - 2013. The results suggest that earnings quality positively affects the company's performance; however accounting conservatism does not affect the company's performance and real earnings management negatively affects the company's performance. Moreover, information asymmetry weakens the effects of earnings quality and conservatism on the company's performance but strengthens the effect of real earnings management on the company's performance.

Keywords: earnings quality; conservatism; real earnings management; the company's performance; information asymmetry.

JEL classification: G10, G30

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Author Biography

Nera Marinda Machdar, Kalbis Institute

Nera Marinda Machdar is an Associate Professor of the Kalbis Institute, Faculty of Economics, Department of Accounting, Graduate School of Economics at thef University of Indonesia. Ihold a postgraduate diploma from school of accounting at Curtin University of Technology, Western Australia. Also, I hold a doctoral degree from the Department of Accounting of the University of Trisakti, Indonesia.

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Published

2017-04-03

How to Cite

Machdar, N. M., Manurung D.R.M., A. H., & Murwaningsari, E. (2017). The Effects of Earnings Quality, Conservatism, and Real Earnings Management on the Company’s Performance and Information Asymmetry as a Moderating Variable. International Journal of Economics and Financial Issues, 7(2), 309–318. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/4067

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