This empirical study is aimed to examine the impact of accruals
quality towards firm performance in Indonesian manufacturing companies
listed in Indonesia Stock Exchange in the year of 2013-2014. The samples
in this research are 178 that are taken from 89 manufacturing companies.
Firm performance is measured using ROA and accruals quality is
measured using Dechow and Dichev model modified by Mc Nichols
(2002).
The result of this research shows that accruals quality positively
affect firm performance of manufacturing companies listed on Indonesia
Stock Exchange. These results indicate the higher the value accruals
quality means that company is able to produce high earnings quality so the
performance of company is also good.