• Corpus ID: 36323438

Earnings Management by Firms with Poor Environmental Performance Ratings : An empirical Investigation in Indonesia 1

  title={Earnings Management by Firms with Poor Environmental Performance Ratings : An empirical Investigation in Indonesia 1},
  author={Susi Sarumpaet},
Watts and Zimmerman (1978) mentioned that one alternative to reduce a firms’ political cost is by choosing the accounting procedures that will minimize reported earnings. As an empirical investigation, this study aims to find out whether or not firms with poor environmental performance ratings manage earnings downwards to reduce political costs. The Ministry of Environment publishes such ratings each year through a program called PROPER (Program for Pollution Control Evaluation and Rating). 

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