The influence of earnings management and asymmetry information on the cost of equity capital moderated by disclosure level

Kiswanto Kiswanto, Novi Fitriani


Company value can be increased by minimizing the cost of equity capital. The cost of equity capital is the rate of return required by investors in accordance with company condition. The purpose of this study was to analyze the influence of earning management and asymmetry information on the cost of equity capital with disclosure level as the moderating variable by presenting Company Size, Market Capitalization, Leverage, and Profitability as the control variables. The population of the study was 148 manufacturing companies listed on the Indonesia Stock Exchange with the total unit of analysis was 330.  Then, hypotheses were analyzed with software Eviews 9. The results of the study showed that earning management, asymmetry information, company size, profitability, and disclosure level had significant influences on the cost of equity capital for both large and small companies. Then, it also showed that disclosure level was able to moderate the influence of earning management on the cost of equity capital, but it was not able to moderate the influence of asymmetry information on the cost of equity capital both large and small companies. It was interesting because the coefficients of influence were different based on the company size. On small companies, the influence of disclosure level on asymmetry information was negative.

JEL Classification: D82, G310



Asymmetry Information; Cost of Equity Capital; Disclosure Level; Earning Management

Full Text:



Adriani. (2013). Pengaruh tingkat disclosure, manajemen laba, asimetri informasi terhadap biaya modal (studi empiris pada perusahaan manufaktur yang terdaftar di BEI tahun 2009-2011). Jurnal Akuntansi, 1(2), 1–27.

Appuhami, R. (2018). The signaling role of audit committee characteristics and the cost of equity capital. Pacific Accounting Review, 30(3), 387–406.

Beneda, N. I. (2003). Estimating cost of capital using bottom-up betas. The CPA Journal, 73(5), 66–73.

Beyer, A., Cohen, D. A., Lys, T. Z., & Walther, B. R. (2010). The financial reporting environment: Review of the recent literature. Journal of Accounting and Economics, 50(2/3), 296–343.

Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193-225. Retrieved from:

Eid, M. Y. (2015). The Impact of Asymmetry information on the Cost of Equity Capital in the Palestine Exchange. Islamic University of Gaza.

Embong, Z., Mohd-saleh, N., & Hassan, M. S. (2012). Firm size, disclosure, and cost of equity capital. Asian Review of Accounting, 20(2), 119–139.

Ghazali, N. A. M., & Weetman, P. (2006). Perpetuating traditional influences: Voluntary disclosure in Malaysia following the economic crisis. Journal of International Accounting, Auditing, and Taxation, 15(2), 226–248.

Gitosudarmo, I., & Basri. (2013). Manajemen Keuangan. Edisi 4. Jakarta: Salemba Empat.

Hajawiyah, A., Adhariani, D., & Djakman, C. (2018). The sequential effect of CSR and COE: Family ownership moderation. Social Responsibility Journal.

Ifonie, R. R. (2012). Pengaruh asimetri informasi dan manajemen laba terhadap cost of equity capital pada perusahaan real estate yang terdaftar di Bursa Efek Indonesia. Jurnal Ilmiah Mahasiswa Akuntansi, 1(1), 103–107.

Indriani, E. W. (2013). Faktor-faktor yang mempengaruhi luas pengungkapan sukarela dan implikasinya terhadap asimetri informasi. Accounting Analysis Journal, 2(2), 208–217.

Jones, J. J. (1991). Earnings management during import relief investigations. Journal of Accounting Review, 29(2), 193-228.

Jumirin. (2011). Pengaruh manajemen laba terhadap biaya modal ekuitas pada perusahaan otomotif yang terdaftar di Bursa Efek Indonesia. Jurnal Riset Akuntansi dan Bisnis, 11(2), 191–204.

Khlif, H., Samaha, K., & Azzam, I. (2015). Disclosure, ownership structure, earnings announcement lag, and cost of equity capital in emerging markets: The case of the Egyptian Stock Exchange. Journal of Applied Accounting Research, 16(1), 28–57.

Kim, J., & Charlie, B. (2013). Real earnings management and cost of capital. Journal of Accounting and Public Policy, 32(6), 518–543.

Kiswanto, & Nurkhin, A. (2013). Kepemilikan manajerial terhadap pajak penghasilan terutang melalui discretionary accruals. Jurnal Keuangan dan Perbankan, 17(3), 343–352.

Ningsih, R. D., & Ariani, N. E. (2016). Pengaruh asimetri informasi, pengungkapan modal intelektual, dan kualitas audit terhadap biaya modal ekuitas (studi pada perusahaan LQ 45 yang terdaftar di Bursa Efek Indonesia tahun 2012-2014). Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi, 1(1), 149–157.

Nurjanati, R., & Rodoni, A. (2015). Pengaruh asimetri informasi dan tingkat disclosure terhadap biaya ekuitas dengan kepemilikan manajerial sebagai variabel moderating. Esensi: Jurnal Bisnis dan Manajemen, 5(2), 173–190.

Nuryaman. (2014). The influence of asymmetric information on the cost of capital with the earnings management as an intervening variable. Journal of Advanced Management Science, 2(1), 42-49.

O’Callaghan, S., Ashton, J., & Hodgkinson, L. (2018). Earnings management and managerial ownership in private firms. Journal of Applied Accounting Research, 19(4), 648–668.

Pagano, M. S., & Stout, D. E. (2004). Calculating the firm’s cost of capital. Management Accounting Quarterly, 5(3), 13–20.

Perwira, A. B., & Darsono. (2015). Analisis pengaruh manajemen laba dan asimetri informasi terhadap cost of equity capital. Diponegoro Journal of Accounting, 4(4), 1–11.

Purwanto, A. (2012). Pengaruh manajemen laba, asymmetry information, dan pengungkapan sukarela terhadap biaya modal. Simposium Nasional Akuntansi XV, 1–27.

Rinobel, B., & Laksito, H. (2015). Pengaruh pengungkapan corporate social responsibility (CSR), ukuran perusahaan, financial leverage, dan manajemen laba terhadap cost of equity perusahaan. Diponegoro Journal of Accounting, 4(2), 1–9.

Risdawaty, I. M. E. (2015). Pengaruh struktur modal, ukuran perusahaan, asimetri informasi, dan profitabilitas terhadap kualitas laba. Jurnal Dinamika Akuntansi, 7(2), 109–118.

Samaha, K., & Dahawy, K. (2011). An empirical analysis of corporate governance structures and voluntary corporate disclosure in volatile capital markets: The Egyptian experience. International Journal Accounting, Auditing, and Performance Evaluation, 7(1/2), 61–91.

Stolowy, H., & Breton, G. (2004). Accounts manipulation: A literature review and a proposed conceptual framework. Review of Accounting and Finance, 3(1), 5–92.

Sugema, I. (2012). Krisis keuangan global 2008-2009 dan implikasinya pada perekonomian Indonesia. Jurnal Ilmu Pertanian Indonesia, 17(3), 145–152.

Sulistyanto, S. (2008). Manajemen Laba: Teori dan Model Empiris. Jakarta: Grasindo.

Suprianto, E., & Setiawan, D. (2017). Manajemen laba di Indonesia: Studi sebuah bibliograpi. Jurnal Keuangan dan Perbankan, 21(2), 287–301.

Utami, W. (2005). Pengaruh manajemen laba terhadap biaya modal ekuitas (studi pada perusahaan publik sektor manufaktur). Simposium Nasional Akuntansi VIII, 100–116.

Wijaya, R. (2017). Kinerja keuangan dan ukuran perusahaan terhadap harga saham dengan kebijakan dividen sebagai variabel intervening. Jurnal Keuangan dan Perbankan, 21(3), 459–472.

Zorn, L. (2007). Estimating the cost of equity for Canadian and U.S. firms. Bank of Canada Review, 27–35.



  • There are currently no refbacks.

Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0