Pengaruh Kesulitan Keuangan terhadap Manajemen Laba dengan Internal Audit sebagai Variabel Pemoderasi pada Perusahaan Non-Finansial yang Terdaftar di Bursa Efek Indonesia Periode 2013-2019

Devi Silviana (Universitas Pelita Harapan)
Elfina Astrella Sambuaga (Universitas Pelita Harapan)

Journal of Management and Business Review
Vol 19, No 1 (2022)

This study aims to provide empirical evidence regarding the effect of financial distress towards earnings management and the role internal audit as a moderating variable. This study uses all non-financial companies listed in Indonesia Stock Exchange during 2013-2019, totalled 1,442 observations. The results show that Distress1 proxied by z-score can reduce accrual and real earnings management practices, while D_Distress2 proxied by net working capital can increase accrual earnings management but reduce real earnings management practices. In addition, internal audit does not have a moderating role in weakening the effect of financial distress on earnings management but can reduce accrual and real earnings management practices.