This research examines whether CEO origin gives impact on earnings
management through real activities manipulation. The sample of this study is 583
observations during 2007-2014. This research uses purposive sampling to collect
data from Indonesian Stock Exchange. This research is conducted by using annual
reports of manufacturing companies listed in Indonesian Stock Exchange.
Independent variable is CEO origin (outside and inside) and dependent variable is
earnings management. CEO origin is measured by using dummy variable.
Earnings management through real activities manipulation is measured by using
abnormal cash flow from operation and abnormal discretionary expenses. To
analysis data, this research uses multiple regression model. The results of this
research show that CEO origin does not give impact on earnings management
through real activities manipulation. It indicates that new outside CEOs will not
have positive impact on income-increasing manipulation.