Income Smoothing, Default Risk and Stock Price Crashes: The Moderating Effect of Manager Age


The purpose of this study is to investigate the moderating role of manager age on the association between income smoothing and stock price crashes and the association between default risk and stock price crashes. The data was collected from the samples of 182 companies firms listed on the Indonesia Stock Exchange from 2013 to 2017 (910 firm-year observation). Using the multivariate analysis as the data analysis method, this study revealed that manager age and default risk were negatively associated with stock price crashes. On the other hand, the income smoothing was not significantly associated with stock price crashes. With regard to moderating effect of manager age, the results showed that manager age effect the association between default risk and stock price crashes with a positive direction. Meanwhile, no significant effect of manager age on the association between income smoothing and stock price crashes is found in this study.

 Articles related

Krishna Prafidya Romantica    

Credit distribution is an activity that dominates the bank's business in its function as an intermediary institution. In the process of lending, banks are often faced with a risk known as credit risk or problem loans. One of the causes of problem loans i... see more

Jaime Alberto Páez Méndez,Henry Antonio Mendoza Tolosa,Henry Laverde Rojas,Diana Marcela Castañeda Díaz,Diego Antonio Restrepo,Christian Eduardo Caicedo Villamil,Hugo Iván Ardila Cubillos,Elver Fuentes Joya,Miguel José Monroy Cañon    

This study clarifies, the concepts of certain national debt with respect to the contingent debt as well as it identifies his impact in the sustainability ofthe public finances ofthe country. The reasoning that become about the sustainability ofthe debt, ... see more

Desak Nyoman Sri Werastuti    

Pemeringkatan obligasi dapat memberikan sinyal tentang probabilitas kegagalan pembayaran utang sebuah perusahaan. Fenomena di Indonesia terjadi beberapa emiten yang mengalami gagal bayar (default) yang kebetulan memiliki peringkat layak investasi (invest... see more

Juliano Ribeiro de Almeida,Guilherme Ribeiro de Almeida    

In this paper, we use the information from the credit default swap market to measure the main components of the oil and gas companies spread. Using nearly 20 companies of this industry with different ratings and nearly 80 bonds, the result was that the m... see more

Agus Suman    

This study evaluates implementation of society empowerment program in the East Java Province. that program is called KDP (Kecamatan Development Program). It is found that PPK has hit the target%2C that is poor district. The target precision is measured f... see more