EARNINGS MANAGEMENT AND ITS DETERMINANT (STUDY OF LISTED COMPANIES ON INDONESIA STOCK EXCHANGE)

Ruth Samantha Hamzah (Universitas Sriwijaya)
Efva Octavina Donata Gozali (Universitas Sriwijaya)
Nur Khamisah (Universitas Sriwijaya)

AKUNTABILITAS: Jurnal Penelitian dan Pengembangan Akuntansi
Vol 15, No 1 (2021): AKUNTABILITAS

The study aims to identify the determinant factors that affecting earning management practices of companies. We used firm size, age, leverage (DER) and profitability (ROA) as independent variables in term of earnings management detection. There were 344 listed companies in Indonesian Stock Exchange at the year of 2017 and 2018, thus there were 688 observed companies as samples. Purposive sampling and multiple regression were employed as sampling and analysis method, respectively. The results show that firm size, age and ROA have a significant effect toward earnings management, whilst DER has no significant effect towards earning management. In addition, earnings management detection provides information to investors and potential investors in decision making process.