2 research outputs found

    Beware of the existence of a big bath with asset impairment after pandemic covid-19!

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    This study attempts to investigate the relationship between big bath accounting and asset impairment. It used the sample consisting of 231 firm-year observations from 33 mining companies listed on the Indonesia Stock Exchange during the 2012 to 2018 period. Logistic regression has been used to analyze a big bath accounting on assets impairment. The results provide evidence that companies that tend to do a big bath accounting will recognize a loss of asset value. A big bath accounting is done because managers assume that investors will respond when the company suffered large losses or small losses. The manager acknowledges the costs of future periods and current period losses when unfortunate unavoidable circumstances in the current period. It will consequently make a profit higher than expected in the next year. In the next period, the company’s performance will look better so that managers can maximize utility in the form of compensation for the targets that have been achieved

    Attention Profitability, Leverage, Managerial Ownership and Firm Size Effect on Big Bath Accounting

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    This research examines the impact of big bath accounting on profitability, leverage, managerial ownership, and firm size. The study used thirty-three firms published on Indonesia Stock Exchange from 2016 to 2020 with 165 observational data. The pattern was analyzed using a logistic regression pattern of variable relationships with SPSS Version 26 software. The result indicates that profitability and leverage significantly influence big bath's accounting treatment so that managers will tend to consider doing big bath accounting at an unfavorable level of profitability and leverage. However, managerial ownership and firm size have no significant impact on big bath accounting. Managers will not continue undertaking extensive bath accounting to maintain the firm's impression among the public. Next research could enhance sample firms and the number of observation periods. Subsequent analysis should find a dependent variable that is not binomial or dichotomy better to reflect the recognition of big bath accounting in firms. The research give suggestions for investor to predict indication of big bath accounting in mining firm at Indonesian Stock Exchange. Keywords: Profitability, Leverage, Managerial Ownership DOI: 10.7176/RJFA/14-4-03 Publication date: February 28th 202
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