Earning Management, Level of Voluntary Disclosure and Cost of Equity Capital: Empirical Study on LQ-45 Index Manufacturing Companies Listed in Indonesia

Adam, Mohamad and Mukhtaruddin, Mukhtaruddin and Putri, Rizki Amelia (2014) Earning Management, Level of Voluntary Disclosure and Cost of Equity Capital: Empirical Study on LQ-45 Index Manufacturing Companies Listed in Indonesia. GSTF Journal on Business Review, 3 (3). pp. 8-16. ISSN 2010-4804

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    Abstract

    This research aims to analyzing the effect of earning management and level of voluntary disclosure on cost of equity capital in a financial report. Since earning management and level of voluntary disclosure are the main problems in management policy, a manager will put them into consideration when making a policy. The population is manufacturing companies listed in Indonesia Stock Exchange (ISE) and in LQ-45 Index in the year of 2009-2010. The samples (22 companies) were selcted by purposive sampling method. The secondary data used in this research and obtained from IDX and used of multiple linear regressions to test the hypothesis development. The results showed that independent variable name earning management influenced cost of equity capital significantly negative and was in line with the first hypothesis. The second hypothesis was rejected because level of disclosure was proven having no significant influenced on cost of equity. Control variable showed that stock beta influenced cost of equity significantly positive whereas the company size was proven having no significant influenced.

    Item Type: Article
    Subjects: H Social Sciences > HG Finance
    Divisions: Faculty of Economics > Department of Management
    Depositing User: Mohamad Adam
    Date Deposited: 23 Mar 2015 10:12
    Last Modified: 23 Mar 2015 10:12
    URI: http://eprints.unsri.ac.id/id/eprint/5289

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