Record Detail

The previous research captured a brief understanding of the high obedience to accounting standards and compliance with tax regulations on the positive movement of market prices. Because volatile movement in the capital market pushes the investor to be concerned about the high financial reporting quality. The earnings quality played a critical factor in recalculating the expected return in the future. It was purposely related to how the management deducts the opportunistic behavior because of the pessimistic investor’s perception of accruals so that the high obedience to available regulation standards had been capable of illustrating the actual performance. This research used multiple regression by gathering all observation data on the go public Indonesia companies in the industrial manufacturing sector from 2015 until 2020, where the sample had amounted to 384 observations. To anticipate the effect of pandemic covid in 2020, it assumed no growth to calculate the future market value. The empirical research provided the mapping of investors’ perception of accruals quality and tax management through the game theory because of a novelty in mapping the feedback of interaction by using the decision tree model dan Teorema Bayes. In conclusion, it has been pointed out that the investor needs valid information about a firm’s actual performance in the future; it likes a protective right on a valuable investment. By taking care of innate accruals quality and the discretionary tax accruals quality, the regulator should force the management to publish high-quality accounting information to stimulate investment in a secure safe area.