Discretionary Accrual in the Bullish and Bearish Time Period in the Indonesian Capital Market (Study of Indonesian Manufacturing Companies)

Financial reporting is one of the obligations of issuers in the capital market who have sold shares to the public. This information is a signal conveyed by the company to investors about the company's financial condition. In accordance with the regulations and accounting standards in the financial reporting manager using the accrual accounting system, various manager motivations are known to be the background in delivering financial reports to the public. This research was conducted on Indonesian manufacturing companies, using the Modified Jones Model, we measured accrual discretion in financial statements. The results of the study show that accrual discretion in Indonesian manufacturing companies is carried out with a variety of motivations, especially to inform the signal of good performance to shareholders. Using the GLS panel data (cross section weights), we found evidence that the bullish time period on the Indonesian capital market was found to have a significant negative effect on discretionary accruals. This statement proves that in periods of bullish time, managers tend to convey information that meets the principles of efficient capital markets.