The Effect of Information Asymetry Financial Distress and Cultural Characteristics on Profit Management with Litigation Risk as a Moderating Variables

Wati Rosmawati; Murtanto

doi:10.55927/fjmr.v1i2.592

Authors

Wati Rosmawati Trisakti University
Murtanto Trisakti University

DOI:

https://doi.org/10.55927/fjmr.v1i2.592

Keywords:

Earnings Management, Accounting Information Asymmetry , Financial Distress, Cultural Characteristics , Litigation Risk

Abstract

The purpose of this study is to analyse empirically the effect of information asymmetry, financial distress, cultural characteristics on earnings management and to determine whether litigation risk can strengthen or weaken the relationship of accounting information asymmetry, financial distress, cultural characteristics on earnings management. Sample in this determined by purposive sampling method, the method of taking a sample with some criteria specified. This study uses secondary data. Samples was 211, secondary data drawn from the pages of the Indonesia Stock Exchange ( www.idx.co.id ) dan www.sahamok.com the form of annual reports of companies . The data analysis method used is the analysis of Descriftive by using assistive Statistical Packages For Social Science (SPSS) . The results showed that accounting information asymmetry has no significant effect on earnings management, financial distress has no significant effect on earnings management, cultural characteristics have a significant positive effect on earnings management. Litigation risk strengthens the influence of Accounting Information Asymmetry on Earnings Management, Litigation Risk weakens the influence of Financial Distress on earnings management, Litigation Risk strengthens the influence of cultural characteristics on earnings management.

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