MANAJEMEN LABA PADA PERUSAHAAN YANG MELANGGAR PERJANJIAN UTANG (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2005-2007)

The objective of this research are to detect the earnings management which is motivated by debt covenants and to compare the earnings management between companies violating debt covenants and control companies. The samples of this research are 35 public companies of manufacturing industry listed in Indonesian Stock Exchange (IDX) in 2005 until 2007. This research used discretionary accruals from Jones Modification Model to detect the level of earnings management. The results of the first hypothesis shows that mean of discretionary accruals at a year before violation is not significantly larger than the year of debt covenant violation. This result does not support the positive accounting theory. It also happens for the mean at the year of violation and at a year after violation. But most of companies violating debt covenents perform income minimization in those years. The result of the second hypothesis shows that mean of discretionary accruals af companies violating debt covenants at a year before and at the year violation of debt covenant is not significantly larger than the control companies. It means that there are many motivations far companies to perform earnings management