MANAJEMEN LABA PADA PERUSAHAAN DENGAN PERMASALAHAN FREE CASH FLOW DAN PERAN MODERASI DARI MONITORING EKSTERNAL
ABSTRACT: This study examines
whether low-growth companies with free cash flow (HFLG) will use
income-increasing discretionary accruals to offset the low or negative earnings
that inevitably accompany investment with negative net presents values (NPVs).
Using 413 manufacturing company year observations over the period 2001-2005,
the results show that there is a significantly association between HFLG and
increasing discretionary accruals. This study also examines the role of
monitoring by auditors, creditors, and independent commissioners in mitigating
the relation of HFLG and income-increasing discretionary accruals. The results
show that (1) monitoring by high-quality auditors and high-proportion of
independent commissioners are effective in mitigating the association of HFLG
and income- increasing discretionary accruals, which suggest that both their
monitoring are more pronounced for HFLG firms and (2) monitoring by high-debt
creditors are effective in reducing income-increasing discretionary accruals,
but their monitoring are not found to be more pronounced in HFLG firm. This
result suggests that the vigilance of creditors are more likely to increase
when debt increase.
Keywords: income-increasing discretionary accruals, free cash flow,
low growth, creditor, independent commissioners
Penulis: Elok Tresnaningsih
Kode Jurnal: jpakuntansidd080086
