Keputusan Pemilihan Strategi Manajemen Laba pada Perusahaan Manufaktur yang Mengalami Financial Distress di Indonesia

BSTRACTThis study discusses real earnings management and classification shiftingalong with accrual earnings management as an alternative strategy forcompanies that experience financial distress, and differences in choices ofstrategies at each stage of financial distress. This research was conducted onall manufacturing companies which experienced financial distress amongthose listed on the Indonesian Stock Exchange for six years from 2012 to2017. Purposive sampling was used to collect data from all the manufacturingsector companies listed on the IDX that experienced financial distress. Thesample companies totaled to 43 with a total of 258 observation data. Themultiple linear regression technique was used in data analysis, analysis aidedby SPSS. The results of this study indicate that in the early stages of financialdistress, companies tend to choose the real earnings management strategy inthe form of decreased production and classification shifting. While in thelater stages the chosen strategy is real earnings management through areduction in selling, general and administrative expenses. Finally at extremestage, companies tend to adopt income-decreasing accruals strategiesKeywords: Financial distress, accrual earnings management, real earningsmanagement, classification shifting196Setiawan dan Putra, Keputusan Pemilihan Strategi ...