Abstract
The aim of this research is to prove whether earnings management persists in prior to Seasoned Equity Offerings (SEO) at the Jakarta Stock Exchange. This research is conducted by comparing financial performances during periods before SEO of companies which execute seasoned equity offerings to those which did not. Samples for this research are companies listed in the Jakarta Stock Exchange during 1997 –2002. The hypothesis for this research is that the financial performances of companies executing SEO is higher than those companies not executing SEO. Proxy for SEO is the event of right issue. Current Ratio (CR), Debt Equity Ratio (DER), Return On Investment (ROI) ratio, Net Profit Margin (NPM) ratio, and Operating Profit Margin (OPM) ratio are used to assess financial performance. 47 companies make thesample of companies executing SEO during 1997 – 2002. For comparison, non-SEO companies are chosen from companies of similar industries and size as those of SEO companies.This research provides evidence that, on average, performances of companies executing SEO are higher than those companies not executing SEO, even though the difference is statistically insignificant. The conclusion for this research is that there are no significant financial performance differences between SEO companies and non SEO companies in the period prior to SEO. The indications of earnings management inthe event of SEO is found in a small numbers of companies.Keywords: Seasoned Equity Offerings, Right Issue, Earnings Management, and Jakarta Stock Exchange
Highlights
The aim of this research is to prove whether earnings management persists in prior to Seasoned Equity Offerings (SEO) at the Jakarta Stock Exchange
This research provides evidence that, on average, performances of companies executing SEO are higher than those companies not executing SEO, even though the difference is statistically insignificant
The indications of earnings management in the event of SEO is found in a small numbers of companies
Summary
Penyampelan Dalam penelitian ini dilakukan dua kali penyampelan; pertama untuk menentukan sampel perusahaan yang melakukan SEO, dan yang kedua; menentukan sampel perusahaan pembanding yang tidak melakukan SEO. Rasio keuangan perusahaan pembanding yang digunakan juga diambil dari ICMD, sedangkan nilai market capitalization saat melakukan right issue diperoleh melalui BAPEPAM Jakarta. Statistik deskriptif merupakan analisis kualitatif yang akan menguraikan nilai statistik variabel-variabel penelitian antara perusahaan yang melakukan SEO dan yang tidak melakukan SEO. Uji beda merupakan analisis kuantitatif yang digunakan untuk mengetahui apakah nilai rata-rata variabel kinerja perusahaan yang melakukan SEO secara signifikan berbeda dengan kinerja perusahaan yang tidak melakukan SEO. Gambaran Deskriptif Kinerja Keuangan Perusahaan Sampel Dari hasil seleksi sampel akhirnya diperoleh 47 data perusahaan yang melakukan SEO dan 47 perusahaan pembanding yang tidak melakukan SEO. Berikut ini disajikan nilai statistik deskriptif variabel kinerja perusahaan sampel yang disajikan dalam Tabel 2
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