Abstract
This study aims to investigate the impact of leverage utilization on Real Earnings Management (REM) in Indonesia Non-Financial Listed Company from period 2009 to 2014. The practice of real earnings management is measured using three proxies: abnormal operation cash flow, abnormal production cost, and abnormal discretionary expense. This research takes place in Indonesia, using the non-financial companies listed in Indonesia Stock Exchange (IDX) with six years sample observations. Measured separately, each proxy showed the significance result of the real earnings management activity with all negative association. This research’s result reveals that leveraged companies are less likely to involve in REM.
| Original language | English |
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| Pages (from-to) | 15-22 |
| Journal | International Journal of Business and Management Invention (IJBMI) |
| Volume | 9 |
| Issue number | 5 |
| Publication status | Published - May 2020 |