<![CDATA[This study aims to examine the effect of managerial overconfidence and accounting and financial expertise in the audit committee on the practice of real earnings management (REM) in manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2018–2022. REM is a form of earnings manipulation carried out through real operational activities, which is generally difficult to detect through conventional financial statements. The research sample was selected using purposive sampling based on specific criteria, resulting in 86 companies with a total of 430 observations over five years. Data analysis was conducted using panel data regression with a random effect model approach. The results show that managerial overconfidence has a positive and significant effect on REM, indicating that higher levels of managerial confidence are associated with a greater tendency to engage in real earnings manipulation. In contrast, accounting and financial expertise within the audit committee does not have a significant effect on REM practices. These findings support agency theory, which suggests that opportunistic managerial behavior can be a key driver of REM, particularly when internal monitoring mechanisms are not functioning effectively. Keywords: managerial overconfidence, audit commitee with accounting and finance expertise, real earnings management.]]>
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