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Journal : Indonesian Financial Review

The Impact of Information and Firm Size on Earnings Management in Indonesia’s Primary Consumer Sector Companies Muliyani, Muliyani; Syamsudin, Syamsudin
Indonesian Financial Review Vol. 5 No. 1 (2025)
Publisher : Yayasan Pendidikan Penelitian Pengabdian Al-amsi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55538/ifr.v5i1.50

Abstract

This study examines the influence of information asymmetry and firm size on earnings management in Indonesian listed firms. Using panel data analysis, the research evaluates both individual and joint effects of these variables. Descriptive statistics indicate a moderate level of earnings management, with firms exhibiting both income-increasing and income-decreasing adjustments. The results of hypothesis testing reveal that information asymmetry alone does not significantly affect earnings management (p = 0.1764), while firm size has a significant negative effect (p = 0.0001), suggesting that larger firms engage in less opportunistic reporting. However, the F-test shows that information asymmetry and firm size jointly have a significant impact on earnings management (p = 0.036), explaining 34.72% of the variation in the dependent variable. These findings align with agency theory, which emphasizes managerial discretion under information imbalance, and signaling theory, which highlights the strategic use of earnings to communicate firm performance. The study underscores the importance of governance and monitoring mechanisms in mitigating earnings manipulation in Indonesian firms.
Co-Authors AA Sudharmawan, AA Abubakar Abubakar Adam Adam Ahmad Albar Tanjung Akbar, Nabila Hadiah Alfi, Della Amaliani, Fitri Amin Amin Andryanto, Muhammad Hasan Anggriani, Putri Bunga Angin, Desi Putriyanti Perangin Aris Fadillah Arya Ramadhan Asman Asman Astuti, Widiyanti Rahayu Budi Azzahra, Divanadia Deluma, Ridwan Dharma, Rifanny Ananta Dina Aulia Dyah Aryani Perwitasari Erlianti, Karina Falya, Yuniarti Fitriah Fitriah Halamury, Mercy Florence Hamna, Hamna Harahap, Reni Agustina Hasibuan, Abdurrozzaq Hasniah Hasniah Herlian, Herlian Hidayati, Azizah Nurul Hikmah, Siti Nur Hirdanti, Dwi Holiawati, Holiawati Indah Permata Sari Irawati, Wiwit Ishak Bagea Jamil, Muhammad Muhtadin Juhadira, Juhadira Juwita Ramadhani Kainama, Nacie Kakiay, Septianty Kee, Phua Lian Khairunnisa Khairunnisa Khairunnisa, Tia Zahra Kholidah, Leliy Leliy Kholida, Leliy Lubis, Ade Irma Seftyani Lubis, Miftahul Jannah Lubis, Sandrina As Zahra Lusiana, Herlina M. Yogi Riyantama Isjoni Mardiana, Lia Marisa Marisa Maulidya, Maulidya Mayada, Mayada Muh. Khaerul Ummah BK Muh.khaerul Ummah BK Muhammad Zaini Mururul Aisyi mutiara mutiara Nasir Nasir Nasution, Andika Fadli Nazhipah Isnani Ningsih, Uut Dwi Nofryanti, Nofryanti Novianti, Desi Nurhasanah Nurhasanah Oesraini , Daffa Dhiba Oesraini, Daffa Dhiba Pane, Nadya Putri Utami Pasaribu, Natasha Melfisyaira Putri Puspitasari, Yulinda Putri, Viona Saskia Rahmi Annisa Rasid, Rasid Rifdha, Aliyah Rizka Andalusia Rustiyarso, Rustiyarso Saipul, Saipul Salianto Salianto, Salianto Sari, Intan Rahma Sholahuddin Yakub Siregar Siddiq, Muhammad Amru Sitti Aisyah Soemarie, Yulistia Budianti Sri Agustini SRI WULANDARI Su'aida, Nily Syamsudin Syamsudin Ufmayza, Dara Usman Usman W A, Sri Putri Winingrum W. A., Sri Putri Winingrum Widodo, Ridho Dwi Windari, Oppy Oktavianty Winingrum W. A., Sri Putri Wulandari, Ihya Yin, The Sin Yohanes Bahari Zuhrina Aidha