The Influence of Firm Performance, Firm Size and Debt Monitoring on Firm Value: The Moderating Role of Earnings Management

摘要

This study aims to test if firm performance, firm size and debt monitoring can increase the firm value in two different conditions: high earnings management and low earnings management. Sample of manufacturing companies is taken from the list of Indonesia Stock Exchange during the period of 2014-2016. Using multiple regression analysis, discloses that: in high earnings management practices, the company's value may decrease, although the company reported good performance. This study also finds that earnings management practices moderates the positive association between firm size and firm value. However, debt monitoring cannot improve firm value, in both situations: High vs. Low earnings manipulation. Monitoring system need to be intensified especially for companies with the above characteristics.