BERBAGAI MODEL PENGUKURAN EARNINGS MANAGEMENT: MANA YANG PALING AKURAT

Abstract

As explained by Healy and Wahlen (1999), earnings management occurs when managers
use judgment in financial reporting and in structuring transactions to alter financial reports
to either mislead some stakeholders about the underlying outcomes that depend on reported
accounting numbers or to influence contractual outcomes that depend on reported
accounting numbers’. Several accounting researchers have proposed models for detecting
the earnings management, e.g, Healy model (1985), De Angelo model (1986), Jones model
(1991), Industry model (1991), Modified Jones Model (1995), Kotari Model (2000), Dechow
& Dichev model (2002), Stubben (2010), the new approach model (2011), etc. This study
aims to evaluate those of earnings management models, which is the most accurate in
measuring earnings management. After comparing those earnings management models, this
study concludes that the new approach model is able to overcome the weaknesses in other
models, thus, so far it is the most accurate model in measuring the earnings management.
Keywords: earnings management, judgment, financial reporting, structuring transaction.
JEL: M14, M49