An Analysis of the Effect of Profitability, Company Size, Institutional Ownership and Leverage on Earnings Management With Financial Difficulties as a Moderating Variable (original) (raw)

Influence of Profitability, Liquidity, Leverage and Company Size on Earnings Management

Jurnal Ekobistek

This study aims to analyze and estimate the effect of Profitability, Liquidity, Leverage and Company Size on Earnings Management in Manufacturing Companies listed on the Indonesia Stock Exchange in 2014-2018. The sample selection technique used purposive sampling and obtained as many as 48 manufacturing companies listed on the Indonesia Stock Exchange. The data analysis technique used panel regression analysis using Eviews 10.0. Based on the results of the first hypothesis test, the partial regression results explain that profitability has a significant effect on Earnings Management. The second hypothesis from the regression results partially explains that Liquidity has no effect on Earnings Management. The third hypothesis from the regression results partially explains that Leverage has a significant effect on Earnings Management. The fourth hypothesis from the regression results partially explains that firm size has a significant effect on earnings management. And the fifth hypoth...

The Effect of Profitability, Leverage, and Managerial Ownership on Earnings Management

International Journal of Application on Economics and Business

This study aims to determine the effect of profitability, leverage, and managerial ownership on earnings management in manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. This study used 30 manufacturing companies as a sample with the purposive sampling method. In this research, Microsoft Excel and EViews 12 was used to assist in data processing. The results of this study show that profitability has positive and significant effect on earnings management, leverage and managerial ownership has no effect on earnings management. This research can be useful for company management, investors, and creditors in dealing with factors that affect earnings management.

The Effect of Financial Distress and Leverage on Earnings Management with Good Corporate Governance as a Moderation Variable

Earning management is an option for companies experiencing financial distress and having a high degree of leverage. This study aims to examine the effect of financial distress and leverage on earnings management with good corporate governance as a moderating variable. The approach used to test the hypothesis in this study is a quantitative approach. The object of this research is manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2019 period. Data obtained by using purposive sampling, namely as many as 62 companies that meet the criteria for sampling with secondary data as a source of data in the form of company annual reports. Data were analyzed using multiple linear regression methods and Moderated Regression Analysis methods with the IBM SPSS Statistics 23 application as analysis tools. The results showed that financial distress affects earnings management. Leverage affects earnings management. Good corporate governance moderates financial distress on earnings management, but good corporate governance does not moderate leverage on earnings management. Information regarding earnings management can be used as a reference in making investment decisions and policies so that they can produce an optimal investment.

The Effect of Profitability, Leverage and Company Size on Profit Management (Empirical Study of LQ 45 Companies Listed on the Indonesia Stock Exchange in 2018-2020)

International Journal of Research Publication and Reviews, 2022

This article presents to find out the motivate managers in managing earnings, including profitability, leverage, and company size. This studies is still a hot topic of discussion among researchers, so much research has been conducted since 2018. This study aims to discuss the effect of profitability, leverage, company size on earnings management in LQ 45 companies listed on the Indonesia Stock Exchange for the 2018-2020 period. This study uses descriptive statistical analysis using secondary data with descriptive statistical tests. Followed by the classical assumption test using the multiple regression model hypothesis testing method. Several conclusions can be drawn that there is profitability that has no effect on earnings management, the leverage variable has a negative effect on earnings management, the firm size variable has no negative effect on earnings management. It is recommended for further research to increase the number of years tested, so that the research results can be more accurate.

The Influence of Good Corporate Governance, Leverage, and Profitability on Earning Management with Firm Size as Moderating Variable in the Banking Companies Listed In Indonesia Stock Exchange in the Period of 2012-2016

2020

The objective of the research was to know the effect of Good Corporate Governance, leverage, profitability on earnings management with firm size as a moderating variable. The research used associative causal method. The population was 30 banking companies listed in BEI (the Indonesia Stock Exchange) in the period of 2012-2016. The samples were 30 observational data, taken by using census sampling technique. The hypothesis was tested by using semPLS analysis. The result of the research showed that, institutional ownership and managerial ownership had negative and significant influence on earnings management, while independent board of commissioners and audit committee had positive but insignificant influence on earnings management. Leverage had negative and insignificant influence on earnings management. Profitability positive and significant influence on earnings management. Firm size as moderating variable could not moderate the correlation of Good Corporate Governance, leverage, p...

Effect of Firm Size and Leverage on Earning Management

2020

Financial reports provide all the information needed for stakeholders, especially investors, and what investors pay attention to is profit as a proxy for management performance and performance. The more professional the company management is, the more investors' perception is that the more profit is generated. Investors rarely analyze the issuer's condition more fundamentally. Because profit is often the center of attention of investors, thus encouraging management to do things that are not appropriate, namely making the entity look good financially or known as Earnings Management. This study aims to analyze the effect of firm size and leverage on earnings management. The samples of this study were companies in the food and beverage sub-sector on the Indonesia Stock Exchange that published their financial reports in 2014-2018. Data were analyzed using the multiple regression method with the SPSS 23.00 analysis tool. The results showed that firm size and leverage had no signi...

The Influence of Institutional Ownership, Leverage, and Audit Committee on Earnings Management: Evidence of Companies Listed on the Indonesia Stock Exchange

Journal of Accounting Research, Organization and Economics, 2019

Objective-This research aims to analyze: 1) The influence of institutional ownership on earnings management, 2) The influence of leverage on earnings management and 3) The influence of audit committee. Design/methodology-Population in this research is entire companies listed on the Indonesia Stock Exchange (BEI) in 2015-2017. Selection of the sample using purposive sampling method with a total of 194 companies. This research uses secondary data. The analysis used is multiple linear regression and t-test for the purpose of identifying the influence of institutional ownership, leverage, and audit committee on earnings management. Results-Findings of this research indicate that: 1) Institutional ownership had a significant effect to earnings management, with direction is positive 2) Leverage had a significant effect to earnings management, with direction is negative, and 3) audit committee had a significant effect on earnings management in positive direction.

Analysis of Factors Affecting Earnings Management Moderated by Institutional Ownership

Jurnal Akuntansi, 2020

The objective of this research is to examine the empirical evidence of leverage, profitability, growth, and institutional ownership on earnings management in manufacturing companies listed in Indonesia Stock Exchange. This research used 54 listed manufacturing companies in Indonesia Stock Exchange, selected using a purposive sampling method, during the research period 2016 until 2018. Data were analyzed using multiple regression analysis. The result of the research indicates that leverage proxied by DAR has a negative significant influence on earnings management. Size and growth have a positive significant influence on earnings management. Profitability proxied by ROA and institutional ownership has no significant influence on earnings management. The results also show that institutional ownership could moderate but not significant the influence of leverage, profitability, and growth towards earnings management of manufacturing companies listed in Indonesia Stock Exchange period 201...

Determinants of Earnings Management in Food and Beverage Sector Companies in Indonesian

Atestasi : Jurnal Ilmiah Akuntansi

This research aims to provide evidence that leverage, managerial ownership, board of directors, and firm size affect earnings management. The type of research used in this research is quantitative research with a descriptive approach. The population in this study is all manufacturing companies in the food and beverage sector listed on the Indonesia Stock Exchange, which are 18 companies and disclose annual reports for 2017-2021. The data collection technique used in this study is more precisely using the purposive sampling technique so that the researcher will take 45 samples from the population. This study found that leverage, managerial ownership, and firm size positively and significantly affect earnings management. In contrast, the board of directors has a negative and insignificant effect on earnings management.

Leverage, Corporate Strategy and Earnings Management: Case of Indonesia

The GSTF Journal on Business Review, 2014

This study examine weather leverage can motivate company to manipulate their earnings in Indonesian manufacturing industry for the periods 2009-2011. Particularly, we use accrual earnings management and real earnings management to catch broader scope of earnings management. We also examined weather corporate strategy, namely diversification, have the moderating effect on the relationship between leverage and accrual earnings management. The number of samples of this research were 141 of manufacturing companies, which are selected using purposive sampling method. Our results suggest that leverage have a positive effect to accrual earnings management, but leverage have a negative effect to real earnings management. This study also find that diversification do not moderate the relationship between leverage and accrual earnings management.