| This research purpose is to prove empirically about the practice of earning management that indicates accounting fraud which is shown on the first research model. Moreover, this research also want to see the effect of earning management and accounting fraud against earning informativeness which is shown on the second research model. This research use two models. In the first research model, accounting fraud is used as a dependent variable and earning management is used as an independent variable as well as using logistic regression as the statistical method. In the second research model, earning management and accounting fraud is used as an independent variable and earning informativeness is used as a dependent variable as well as using linear regression as the statistical method. The first research model is using 151 samples and the second research model is using 219 samples. Both of these research is using the sample from the manufacturing company which is registered at BEI for the period of 2008-2011. The result of the first research model shows that the practice of earning management may indicate fraud in accounting. This means the first hypothesis that tells about earning management is positively related with accounting fraud is accepted. Otherwise, the result of the second research model shows that the second and third hypothesis are denied. This shows that accounting fraud is positively related with earning informativeness and earning management negatively related with earning informativeness. |