Earning Management Actions and Conditional Revenue as Managerial Efforts to Maintain Bond Rating

Abstract

The purpose of this study is to analyze factors affecting the Bonds rating of non-financial companies listed on the Indonesia Stock Exchange for the period 2012-2016. The sample was selected using a purposive sampling method that amounted to 30 companies-data processing techniques using multiple regression analysis what helped by the SPSS program. This study shows that partially the company's size, company's growth, and auditor size have a significant influence on bond rating, while earnings management has no significant effect on bond rating. This result supports Wajnsztajn & Heintz's (2016) study that management will think twice about earnings management when rating bonds. This is based on the principle of transparency in corporate governance that the actual company's performance will better reflect the company's position as a good bond issuer. However, this study shows that the company's size, company's growth, and auditor size significantly affect the bond rating. This result proves that firm size, growth, and auditor size are essential factors in a bond rating. Without having to do earnings management, if the company has good size, growth, and auditors size-related, it will also be good to bond ratings according to these rating providers' criteria.

Pengaruh Love Of Money, Religiusitas, dan Time Budget Pressure terhadap Persepsi Etis Auditor

“…Misalnya manajemen yang melakukan manajemen laba. Manajemen berharap dengan melakukan manajemen laba maka akan memberi sinyal bahwa kinerja keuangan perusahaan yang positif sehingga dapat meningkatkan kepercayaan masyarakat dan memaksimalkan dana perusahaan (Andriawan et. al., 2020).…”