AKRUAL: PROKSI EARNINGS QUALITY YANG MASIH DIPERDEBATKAN

The study tried to confirm the statement of the presence of the anomaly in the accrual component persistence as proxied the earnings quality. Previous study by Sloan (1996) found that the low persistence of the accrual component in earnings indicated low reliability of the accrual. Further study by Xie (2001), DeFond and Park (2001) found that the low persistence of the accruals was primarily related to the discretionary accrual was expected to result from the earnings management through the accrual component, especially the discretionary accrual. In fact, the test was conducted using the impact of the growth in net operating assets by Fairfield et al. (2003). He tested the basis of the study by Sloan (1996) by including the impact of the growth in net operating assets to measure the persistence level and the presence of mispricing in the earnings accrual component. The study by Fairfield et al. (2003) found that the accrual component had the persistence level similar to that of operating cash flow component. Furthermore, Guay, Kothari, and Watts (1996) tested this issued that conducted using Iwo hypothesis, performance measure hypothesis and opportunistic accrual management hypothesis. The study by Guay, Kothari, and Watts (1996) found that the accrual had a high persistence component as proxied the earnings quality.