The Influence of Firm Performance, Firm Size and Debt Monitoring on Firm Value: The Moderating Role of Earnings Management

DOI

10.2991/ebic-17.2018.92How to use a DOI?

Keywords

Firm Value; Firm Performance; Firm Size; Debt Monitoring; Earnings Management

Abstract

This study aims to test if firm performance, firm size and debt monitoring can increase the firm value in two different conditions: high earnings management and low earnings management. Sample of manufacturing companies is taken from the list of Indonesia Stock Exchange during the period of 2014- 2016. Using multiple regression analysis, discloses that: in high earnings management practices, the company's value may decrease, although the company reported good performance. This study also finds that earnings management practices moderates the positive association between firm size and firm value. However, debt monitoring cannot improve firm value, in both situations: High vs. Low earnings manipulation. Monitoring system need to be intensified especially for companies with the above characteristics.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Rina Br Bukit
AU  - Fahmi N Nasution
AU  - Paham Ginting
AU  - Phou Sambath
AU  - Mrs Nurzaimah
PY  - 2018/01
DA  - 2018/01
TI  - The Influence of Firm Performance, Firm Size and Debt Monitoring on Firm Value: The Moderating Role of Earnings Management
BT  - Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)
PB  - Atlantis Press
SP  - 583
EP  - 588
SN  - 2352-5428
UR  - https://doi.org/10.2991/ebic-17.2018.92
DO  - 10.2991/ebic-17.2018.92
ID  - BrBukit2018/01
ER  -