Управління прибутками в припинених операціях

Operation and business line discontinuation can be used as a tool to implement earnings management practices, whether beneficial or detrimental. This study aims to analyze the impact of discontinued operations on earnings management practices in Indonesia. This study was conducted on companies listed on the Indonesia Stock Exchange (IDX) that reported discontinued operations from 2016 to 2024. The Modified Jones Model was used to measure earnings management. Using Generalized Least Squares, this study found that discontinued operations had a positive effect on earnings management practices. This indicates that reporting discontinued operations can be a tool for manipulating financial statements and enhancing profit outcomes, thereby affecting the integrity of financial information presented to stakeholders. Therefore, stakeholders need to evaluate the financial health of companies and assess investment risks and strategies based on the accuracy of financial reports and earnings management practices.