Abstract
This study aim to investigate whether income-increasing earnings management as measured by abnormal discretionary accruals has an impact on initial bond rating in Indonesia. The population to this study is a listed bond on the Indonesia Stock Exchange issued by non-financial firms from the year of 2008 — 2018 with bond rated by PT Pefindo as Indonesian Credit Rating Agency. The empirical result shows an inadequate evidence of income-increasing earnings management behaviour around the time of initial bond offering in Indonesia. In a matter of earnings management impact on bond ratings, the result of this study shows that earnings management have a negative impact on initial credit ratings in Indonesia.
Keywords: Earnings Management, Bond Credit Rating, Credit Rating Agency
