The Social Sciences

Year: 2016
Volume: 11
Issue: 21
Page No. 5071 - 5079

The Determinant on Accrual Management and Earning Volatility: A Study on Hedged and Unhedged Company in Indonesia

Authors : Syahril Djaddang, Imam Ghozali and Tarmizi Achmad

Abstract: The objective of this research is to evaluate the different between corporate governance toward accrual management and earning volatility between company hedged and unhedged in Indonesian Stock Exchange. This research used secondary data of annual report and accrual management in 2010-2014. The data collection used documentation method. The hypotheses test used Structural Evaluation Method (SEM) with WarpsPLS 4.0 program. The test result indicates ownership management model and independent audit committee as a monitoring and supporting factor of the companies to lower volatility earning in the hedged company and management ownership in companies unhedgeds company. There is a difference of financial value as a trading on hegder and unhedgeds company and speculation to lower volatility earnings.

How to cite this article:

Syahril Djaddang, Imam Ghozali and Tarmizi Achmad, 2016. The Determinant on Accrual Management and Earning Volatility: A Study on Hedged and Unhedged Company in Indonesia. The Social Sciences, 11: 5071-5079.

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