Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2022)

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The Impact of Earning Management, Business Strategy, and Firm Life Cycle on Financial Distress, with State Owned Enterprises as a Moderating Variable of Listed Company in Indonesia Stock Exchange 2019–2022

Authors
Fanny Anggraini1, *, Nur Dhani Hendranastiti1
1University of Indonesia, Depok, Indonesia
*Corresponding author. Email: fanny.anggraini01@ui.ac.id
Corresponding Author
Fanny Anggraini
Available Online 30 August 2023.
DOI
10.2991/978-94-6463-226-2_33How to use a DOI?
Keywords
Financial Distress; Earning Management; Business Strategy; Firm Life Cycle; State-Owned Enterprises
Abstract

Company’s management conduct the bankruptcy analysis to mitigate financial distress in the hope of making the right business strategy, in particular of stages in the firm’s life cycle, to reduce the possibility of earning management that has close association with financial distress. This study examines the effect of earnings management, business strategy, and firm’s life cycle on financial distress by using state-owned enterprises as a moderating variable. The study used a sample of 294 listed companies on the Indonesia Stock Exchange with a total of 3,528 observations. The selected research model was the fixed effect model, which the results showed that earnings management, cost leadership & differentiation business strategy, and the firm’s life cycle with a proxy for retained earnings to total assets have an effect on the possibility of financial distress, but for the firm life with a proxy for retained earnings to total equity, found that no impact on financial distress. The moderating variable of state owned enterprises in companies can strengthen or weaken each independent variable’s relationship to financial distress.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
30 August 2023
ISBN
10.2991/978-94-6463-226-2_33
ISSN
2352-5428
DOI
10.2991/978-94-6463-226-2_33How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Fanny Anggraini
AU  - Nur Dhani Hendranastiti
PY  - 2023
DA  - 2023/08/30
TI  - The Impact of Earning Management, Business Strategy, and Firm Life Cycle on Financial Distress, with State Owned Enterprises as a Moderating Variable of Listed Company in Indonesia Stock Exchange 2019–2022
BT  - Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2022)
PB  - Atlantis Press
SP  - 402
EP  - 415
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-226-2_33
DO  - 10.2991/978-94-6463-226-2_33
ID  - Anggraini2023
ER  -