Abstract:
The objective of the researh is provide an empirical study on the influence of earnings management to fraudulent financial statement. This research used quantitative aaproach and gathered the sample data from the manufacture companies listed in website of Indonesia Stock Exchange period of 2012-2015, with total sample data gathered is 153 rspectively. Methodology used in analyzing the data is regression analysis. The result indicate that the presence of earnings management influences fraudulent financial statement. Earnings management with the proxy of accruals and real earnings management (REM and AEM) indicate the influence toward fraudulent financial statement (FFS). This research contributes to the literature in understanding the raltion between earnings management and fraudulent financial statement.
