Pengaruh Executive Incentives terhadap Bankruptcy Risk melalui Earning Management sebagai Variabel Intervening pada Perusahaan yang Terdaftar dalam Saham Indeks Kompas 100 di Bursa Efek Indonesia

Shella Angelina (Universitas Kristen Petra)
Devie Devie (Universitas Kristen Petra)

Business Accounting Review
Vol 4, No 2 (2016): Business Accounting Review

Research that linking the affect of Executive Incentives (EI) and Earning Management (EM) showedthe impact of the company Bankruptcy Risk (BR). Among them were the researches of Bergstresserand Philippon (2006) Jouber and Fakhfakh (2013), Yang, Lai and Tan (2008), Mahama (2015) WeiTing (2009). On the other hand, the provision of Executive Incentive (EI) would likely decrease thevalue of Bankruptcy Risk (BR).This study used a sample ranging from 2012 to 2014, of 32 companies using by controlvariables of executive incentives, earnings management, and bankruptcy risk. The data processed byusing Smart PLS. This study was able to prove the existence of a positive relationship betweenexecutive incentives and earning management, positive relationship between earning managementand bankruptcy risk, and negative association between executive incentives and bankruptcy risk.