Citation:

Rieke Pernamasari, Juita Tanjung. "The Differences of Activities Accrual Earnings Management and Real Earnings Management: Before and During the Covid -19 Pandemic" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 336-342, 2023.

Abstract:

The purpose of this study is to compare real and accrual earnings management practises before and after the COVID-19 epidemic. Manufacturing enterprises in the consumer sector that were listed on the Indonesia Stock Exchange (BEI) for two years prior to the epidemic and two years during the pandemic make up the research sample. A purposive sampling method was used, resulting in 44 observations. The analysis tool used was SPSS 26 with a test of differences analysis. The study's findings suggest that there is a difference between the Abn DISEXP in actual earnings management actions before and during the COVID-19 epidemic. This indicates that managers are more likely to select real earnings management, which involves influencing real activities through discretionary charges like R&D, marketing, selling, and general administrative expenses. However, neither before nor during the COVID-19 pandemic were there any variations in the Abn CFO and Abn PROD. There were no variations in the activities used to manage accrual earnings through discretionary accruals before or during the COVID-19 epidemic. Investors, businesses, and upcoming researchers are all intended recipients of the consequences of this study. The study comes to the conclusion that managers prefer real earnings management to accrual earnings management. By assessing several forms of earnings management actions, this study adds to the body of existing research. Additionally, it advances the study of how businesses managed their earnings during the pandemic.

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Keywords:

Real Earnings Management, Accrual Earnings Management, Pandemic.