عنوان انگلیسی مقاله:
Earnings management, business strategy, and bankruptcy risk: evidence from Indonesia
ترجمه فارسی عنوان مقاله:
مدیریت سود ، استراتژی تجاری و خطر ورشکستگی: شواهدی از اندونزی
Sciencedirect - Elsevier - Heliyon, 6 (2017) e03317: doi:10:1016/j:heliyon:2020:e03317
The purpose of this study is to examine the effect of accrual earnings management and business strategy to bankruptcy risk. Multiple Least Square (MLS) regression and robust regression of M-Estimator regression are performed on ﬁnancial data of 1,068 non-ﬁnancial ﬁrms listed on the Indonesia Stock Exchange (IDX). The result indicates that there is no relationship between earnings management and bankruptcy risk, while ﬁrms that implement either one of two generic business strategies of cost leadership or differentiation, signiﬁcantly mitigate the risk of bankruptcy. The effect of earnings management to bankruptcy risk is essential for external stake- holders, such as investors and creditors, to assess bankruptcy risk, ﬁnancial capability, and credit worthiness of a ﬁrm, while business strategy effect on bankruptcy risk beneﬁts internal stakeholders, such as managers, in formulating strategies to deal with going concern issues.
Keywords: Earnings management | Business strategy | Bankruptcy risk | Accounting | Industry management | Business management | Strategic management | Risk management | Business