Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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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)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.05.01.402

Pages: 40-45

Keywords: Asymmetric Information, Classification Shifting, Discontinued Operations, Unexpected Core Earnings

Abstract

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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