Earning Management, Income Volatility, and Cost of Debt

DOI

10.2991/aebmr.k.201212.054How to use a DOI?

Keywords

Cost of debt, Discretionary accrual, Income volatility

Abstract

This study aimed to examine the factors that influence the cost of debt variable. The independent variables in this study were discretionary accrual and income volatility. The sample that the writer used in this study were public companies listed on the Indonesia Stock Exchange 2014-2018. Banking and companies that subject to final tax were excluded, including mining, mining, infrastructure, real estate, and construction companies. The data used were obtained from Bloomberg, Indonesia Capital Market Directory (ICMD), financial statements, and reading sources obtained by experts as a theoretical foundation. The analysis technique used in this study was weighted least square and used Gretl. Based on the tests that have been done in this study, we find that discretionary accruals had no effect on the cost of debt. Suggestions for future creditors in Indonesia should also consider the risk of tax avoidance and earning management as a basis for making decisions when they want to provide loans.

Copyright

© 2020, 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  - Elisa Tjondro
AU  - Maria Melinda Halim
AU  - Anastasia Winnie Iskandar
PY  - 2020
DA  - 2020/12/14
TI  - Earning Management, Income Volatility, and Cost of Debt
BT  - Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020)
PB  - Atlantis Press
SP  - 384
EP  - 391
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201212.054
DO  - 10.2991/aebmr.k.201212.054
ID  - Tjondro2020
ER  -