Earnings Management, Business Strategy, and Business Complexity

DOI

10.2991/aebmr.k.200127.084How to use a DOI?

Keywords

Earnings management, business strategy, firm performance, business complexity

Abstract

This study aims to analyze the effect of earnings management and business strategy on firm performance, which is moderated by business complexity. The object in this study was manufacturing companies listed on the Indonesia Stock Exchange (IDX) over the 2015-2018 period. Partial Least Square Structural Equation Modeling (PLS-SEM) was used in this study, and the results showed that earnings management had no significant effect, while business strategy had a significant positive effect on firm performance. Business complexity weakened the influence of earnings management on firm performance, while business complexity has not moderated the influence of business strategy on firm performance. The results of this study indicated that the determination of the right business strategy could improve firm performance instead of earnings management.

Copyright

© 2020, 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  - G.J. Romadhon
AU  - Suyanto
AU  - N. Ahmar
PY  - 2020
DA  - 2020/01/31
TI  - Earnings Management, Business Strategy, and Business Complexity
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 411
EP  - 415
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.084
DO  - 10.2991/aebmr.k.200127.084
ID  - Romadhon2020
ER  -