HOW MARKET COMPETITION CAN INFLUENCE BUSINESS STRATEGIES-INDUCED REAL EARNINGS MANAGEMENT: AN EMPIRICAL EVIDENCE FROM INDONESIA

Nurul Fitriana Zulaikha; Fuad Fuad

doi:10.14710/jaa.19.2.157-171

DOI: https://doi.org/10.14710/jaa.19.2.157-171

HOW MARKET COMPETITION CAN INFLUENCE BUSINESS STRATEGIES-INDUCED REAL EARNINGS MANAGEMENT: AN EMPIRICAL EVIDENCE FROM INDONESIA

Nurul Fitriana Zulaikha - Department of Accounting, Faculty of Economics and Business, Universitas Diponegoro, Indonesia

*Fuad Fuad

- Department of Accounting, Faculty of Economics and Business, Universitas Diponegoro, Indonesia

Citation Format:

Abstract

The study explores the relationship between business units strategy and market competition towards earnings management. Using a balanced sample from Indonesian manufacturing companies from 2011 – 2014 we find convincing evidence that earnings management practice is heavily determined by the choice of firms’ strategic decisions. More specifically, we document that while cost leadership strategy positively affects the earnings management, the inverse effect for the relationship between differentiation strategy and earnings management is also apparent. Also, our finding notes that the intensified market competition is also likely strengthen the relationship between cost leadership strategy and earnings management practice, but such moderating role is not apparent for differentiation strategy and earnings management.

Fulltext View|Download

Keywords: business strategy; cost leadership strategy; differentiation strategy; market competition; earnings management

Article Metrics:

Article Info

Section: Articles

Language : EN

In Volume 19, Nomor 2, Tahun 2022

Recent articles

PENGARUH PERENCANAAN PAJAK DAN PROFITABILITAS TERHADAP MANAJEMEN LABA HOW MARKET COMPETITION CAN INFLUENCE BUSINESS STRATEGIES-INDUCED REAL EARNINGS MANAGEMENT: AN EMPIRICAL EVIDENCE FROM INDONESIA CORPORATE CULTURE BERBASIS BARZANJI DALAM MENINGKATKAN NILAI PERUSAHAAN More recent articles

Most cited articles

Model Deteksi Kecurangan Berbasis Fraud Triangle PENGARUH KARAKTERISTIK PEMERINTAH DAERAH TERHADAP KEPATUHAN PENGUNGKAPAN WAJIB DALAM LAPORAN KEUANGAN PEMERINTAH DAERAH (Studi Empiris pada Kabupaten/Kota di Indonesia) PENGARUH KARAKTERISTIK PERUSAHAAN TERHADAP LAMANYA WAKTU PENYELESAIAN AUDIT (AUDIT DELAY) PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PENGARUH TIPE INDUSTRI, UKURAN PERUSAHAAN, PROFITABILITAS, TERHADAP CORPORATE SOCIAL RESPONSIBILITY ANALISIS PENGUNGKAPAN EMISI GAS RUMAH KACA More cited articles

Last update:

No citation recorded.

Last update: 2024-11-21 00:30:54

No citation recorded.

Authors who publish with this journal agree to the following terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).