8. Hubungan Stock Split dengan Manajemen Laba pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2001-2011

Abstract

Relation between Stock Split and Earning Management on Indonesian Stock Exchange Listed Companies Year 2001-2011. This study analyzesthe relation between stock split and earnings management, whether firms with stock split engage in earnings management, the market reaction, and the effect of firm size on the association between the market reaction and earnings management. Total samples were 63 stock split firms listed on the Indonesian Stock Exchange in 2001-2011. The results show that firms engage in income-increasing earnings management in the pre split period. Market reaction overearnings management is negative, contrary to expectation, because market possibly construed the activities as opportunistic behavior. Small firms have more negative stock return than large firms.