Using Earnings Management Techiniques during Initial Public Offerings of a Company

Abstract

The purpose of this study are to analyze indication of earnings management conducted by companies, to analyze the differences of earnings management between IPO and one period after IPO, to analyze the differences of earnings management between IPO and one period before IPO, to analyze the differences of earnings management between one period before IPO and one period after IPO.  Because of the scope of financial accounting is very broad, the researcher tries to limit on the relationship between IPO and earnings management that the company listed on IDX (Indonesian Stock Exchange) in period 2008-2012. From the result and discussion, the conclusion of this research war that the companies do earnings management on the year of IPO, the companies don’t do earnings management one year before IPO (t-1) and the companies don’t do earnings management one year after IPO (t+1). There is differences of earnings management between IPO and one period after IPO, and differences of earnings management between IPO and one period after IPO. There is no differences of earnings management one period before IPO and one period after IPO.