THE FACTORS AFFECTING EARNINGS MANAGEMENT
No Thumbnail Available
Date
2024-02-03
Authors
Vivi
Journal Title
Journal ISSN
Volume Title
Publisher
Sekolah Tinggi Ilmu Ekonomi Trisakti
Abstract
The objective of this research is to find empirical evidence related to factors affecting earnings management. Especially sales growth, leverage, managerial ownership, institutional ownership, company age, audit quality, financial distress, profitability, and firm size on earnings management.
This research uses a population of all non-cyclical and cyclical companies listed on the Indonesia Stock Exchange from 2020 to 2022. The sampling method applied in this research is purposive sampling and seventy one (71) non-cyclical and cyclical companies meet with the sampling criteria and selected as the sample with the total data of 213 data. The data analysis method used in this research is the multiple regression method.
The result obtained from multiple regression shows that company age, audit quality, and profitability has an effect on earnings management. On the contrary, the other independent variables, which are sales growth, leverage, managerial ownership, institutional ownership, financial distress, and firm size has no effect on earnings management. Newly-established companies are more likely to do earnings management than long-established companies. Auditors in big-4 companies have more competence and experience that leads them to discover earnings management. Companies with low profitability carry out earnings management to attract external parties
Description
Keywords
Skripsi