Economics and Business
ISSN 2775-9237 (Online)
Published: 25 January 2022
Profits Management with Classification Shifting: Testing the Impact of Discontinued Operations and Institutional Ownership on Unexpected Core Earnings
Lauw Tjun Tjun, Titik Aryati
Maranatha Christian University (Indonesia), Trisakti University (Indonesia)
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Keywords: Asymmetric Information, Classification Shifting, Discontinued Operations, Unexpected Core Earnings
One of the earnings managements is classification shifting. Besides extraordinary and exclusive items, the companies can discontinue their operations as the classification shifting form. This research intends to prove and analyze the influence of discontinued operations and institutional ownership on unexpected core earnings. The population is non-financial companies in the Indonesian capital market with the stopped operation from 2012 to 2017. After a simple random sampling and a regression model are utilized to sample companies and analyze data, this study infers that discontinued operations negatively affect unexpected core earnings. Unfortunately, institutional ownership does not influence it.
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