The Effect of Earnings Management Practice on Corporate Borrowing Capacity through Corporate Reputation

DOI

10.2991/iac-17.2018.28How to use a DOI?

Keywords

Earnings Management; Corporate Reputation; Corporate Borrowing Capacity

Abstract

This research is conducted to determine the association between earnings management practice and corporate borrowing capacity through corporate reputation. Earnings management practice is measured by discretionary accruals based on the Modified Jones Model. Hypotheses are tested using multiple regression analysis and two-stage ordinary least squares for 65 companies listed on the Indonesia Stock Exchange in the period 2012-2013. The results of the research provide empirical evidence that earnings management practice has a significant negative association with corporate reputation, while corporate reputation has a significant positive association with corporate borrowing capacity. The results of this research also show that there is a significant positive association between corporate reputation estimated by earnings management practice and borrowing capacity.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Andy Setiawan
AU  - Ancella Anitawati Hermawan
PY  - 2017/08
DA  - 2017/08
TI  - The Effect of Earnings Management Practice on Corporate Borrowing Capacity through Corporate Reputation
BT  - Proceedings of the 6th International Accounting Conference (IAC 2017)
PB  - Atlantis Press
SP  - 156
EP  - 161
SN  - 2352-5428
UR  - https://doi.org/10.2991/iac-17.2018.28
DO  - 10.2991/iac-17.2018.28
ID  - Setiawan2017/08
ER  -