The Relationship Between Financial Information and Accruals of Listed Companies in The Market of Alternative Investment (MAI)
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Abstract
The objective of this research was to investigate the relationships between financial ratios and accruals of listed companies in the Market of Alternative Investment (MAI). Data were collected from financial statements of 169 firms during 2015 to 2019, total 666 sets. Financial ratios, as independent variables, included return on equity, debt to equity, and cash holdings. The dependent variable was accruals measured by Dechow & Dichev (2002) model. Whereas the firm size was a control variable. Multiple regression analysis was employed to test the relationships among variables. The results of the analysis showed that return on equity and debt to equity ratios had a significantly positive relationship with accruals at 0.01 level. However, it was not found that cash holdings were associated with accruals. In addition, there was no relationship between firm size and accruals.
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