Abstract

For over the period, the earnings quality indicates the essential requirement of illustrating the real earnings because of the positive contribution to the highest security level of investment, where the serious attention on accounting treatment policy empirically. This causal research explores the meaningfulness of accounting information in capturing a rational decision model as a mapping of investor decisions and high earnings quality related to the optimism of ongoing concern for a higher future return. The observation period in the listed manufacturing industry sector was from 2010 until 2021, which amounted to 284 samplings from 154 companies. This willingness to be” prudent” in accounting has been prioritized for high obedience and compliance in predicting the accurate future return, the rational decision model has captured interactive feedback in detecting opportunistic accruals, and it is related to monitoring the high sustainability as a pattern in maximizing each utility. As proof of high earnings quality as a measurement of trust, this recommendation for the regulator is to level up the awareness of quality accounting information, this dividend policy should be fixed as a mandatory obligation; the going-private procedure is for the low-prospect company to keep the high certainty in smoothing the volatile movement of the market price.

Keywords: Innate Accruals Quality, Tax Management, Future Market Value, Obedience to Accounting Standards, Compliance with Tax Regulation