<![CDATA[This study aims to examine the effect of earnings quality on firm value and the moderating role of political connections and family ownership in this relationship. The study population comprised all manufacturing companies listed on the Indonesia Stock Exchange for the 2020-2024 period. A purposive sampling method resulted in one hundred and sixty sample companies with a total of eight hundred panel observations. Financial data were sourced from the OSIRIS database, while data on political connections and family ownership were obtained from company annual reports and stock exchange disclosures. The study employed panel data regression analysis with a fixed effects model approach and two model specifications: a direct effect model and a moderation model with interaction variables. Earnings quality was measured using discretionary accruals based on the modified Jones model transformed with the condensed inverse hyperbolic sine method, while firm value was measured using the natural logarithm of Tobin's Q. The results showed that earnings quality significantly influences firm value, but in the opposite direction from the hypothesis. Low earnings quality is associated with higher firm value, consistent with the income smoothing hypothesis. Political connections have been shown to negatively moderate this relationship, amplifying the detrimental impact of low earnings quality on politically connected firms. Conversely, family ownership moderates this relationship positively, mitigating the negative impact of low earnings quality through an alignment mechanism based on signaling theory. This study concludes that investors' assessments of earnings quality are not independent but rather conditionally influenced by a firm's institutional characteristics.]]>
