The relevance of the value of accounting information to stock prices with profit management as a moderation variable on the Indonesia stock exchange

Solikhah, Miratus and Andriani, Sri ORCID: https://orcid.org/0000-0001-5872-5117 (2024) The relevance of the value of accounting information to stock prices with profit management as a moderation variable on the Indonesia stock exchange. RATIO: Reviu Akuntansi Kontemporer Indonesia, 5 (2). pp. 65-79. ISSN 2746-0061

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Abstract

The purpose of this study is to examine how insurance companies' profit management strategies affect the impact of accounting data on stock prices. Nothing more than profit, book value, and operational cash flows are considered valuable pieces of information. Multiple linear regression analysis was used in this study as a quantitative method. This research covers the period from 2018 to 2022 and focuses on insurance businesses with an Indonesia Stock Exchange listing (IDX). Operating cash flow (OCF), book value (PBV), and profit value (EPS) are the primary independent variables investigated in this research. The stock price as measured at the conclusion of the year's transaction is the dependent variable being considered. Profit management as measured by Discretionary Accruals (DA) also acts as a moderator. Using a purposive selection approach, 16 out of 18 insurance firms that met the requirements were included in the research cohort. Analytical approaches used include testing for moderation factors using Eviews 12 software and Random Effect Model (REM) analysis. This analysis found no statistically significant relationship between stock prices and profit value, book value, or cash flow. Profit management was shown to increase book value and profit value in relation to stock prices, but it had no effect on operational cash flows.

Item Type:	Journal Article
Keywords:	Relevance of Accounting Information; Stock Price; Profit Managemen
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
Divisions:	Faculty of Economics > Department of Accounting
Depositing User:	sri andriani
Date Deposited:	29 Nov 2024 12:30

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