PENGARUH MANAJEMEN LABA TERHADAP REAKSI PASAR DAN RISIKO INVESTASI PADA PERUSAHAAN PUBLIK DI BURSA EFEK JAKARTA

Abstract

Earning is an important factor to estimate the performance of company as well as a base to estimate the future profit. Investors pay much attention to the profit earned, without paying attention to the process of forming the information. The neglect of investors makes managers conduct "earning management". The Research analized about earnings management of manufacture's company in Jakarta Stock Exchange (JSX). The research aims to: 1) Analyzing the difference of market reaction to the earnings management and non earnings management's companies. 2) Analyzing the difference of investment risk between earnings management and non earnings management's companies. The research was done to manufacture's companies listed in JSX. Among 157 manufacture's companies listed in 2001, 32 companies were taken to become sample. Using total accruals by indicator, earnings management was analized with discretionary accrual approach. The sample were divided into two types, 12 companies were earnings management and 20 companies were non earnings management. Independent sample t-test was used to analyzed data after it has normal distribution by Kolmogorov-Smirnov test. The result show that there was no difference of the market reaction between earnings management's companies and non earnings management's companies and there was no difference of investment risk between earnings management's companies and non earnings management's companies. It based of the result of independent sample t-test that show the probability of amount market reaction and investment risk were not significant in 5 percent. Keywords: Earnings Management, Market Reaction, Investment Risk