THE ROLE OF GROWTH OPPORTUNITY IN SHAPING REAL-EARNINGS MANAGEMENT AND ASYMMETRIC COST BEHAVIOR Agus Sholikhan Yulianto (a)- Pujiharto (b)
a) Accounting Department, Faculty of Economics and Business, University of Sultan Ageng Tirtayasa
b) Accounting Department, Faculty of Economics and Business, Diponegoro University
Abstract
ABSTRACT
Purposes: This study investigated the role of internal and external information regarding the growth opportunity in shaping sticky costs and the role of earnings management that limits this action.
Methods: This research is a quantitative study that applies the panel data regression to analysis the role of macroeconomics variables regarding opportunities to grow on the real-earnings management and asymmetric cost behavior.
Results: The regression panel data analysis demonstrated the positive influence delta expected national economic growth on cost stickiness, in contrast to sales growth, real-earnings management & its components, which influenced the cost stickiness negatively. Interaction between sales growth and delta expected national economic growth influences the sticky cost negatively, which implies the internally developed information domination over the external.
Conclusion and suggestion: This work proved that both the internally generated and the externally processed information are crucial factors influencing managers^ decisions to enter or delay a specific action. However, this paper also ascertained that information close to the internal experience and capabilities provides a higher relevance
Keywords: Cost stickiness, real-earnings management, expected national economic growth
