<![CDATA[Earnings management practices triggered by financial instability can damage the quality of financial report information and reduce investor confidence. This phenomenon is a serious concern, especially within Indonesian food and beverage sector firms, which were squeezed by post-pandemic economic challenges and changes in fiscal policy. The objective of this study is to investigate the impact of financial stability on earnings management practice, while considering corporate governance (proxied by the audit committee, managerial ownership, and independent commissioners) as a moderating variable. This research employs quantitative approach with secondary data types. The research population consist of food and beverage companies registered on the Indonesia Stock Exchange within the timeframe of 2022-2025. By employing a purposive sampling method, a total final sample of 72 observations was obtained after outlier testing. The analysis of data was carried out through simple linear regression and moderated analisis. Result reveal that financial stability has a negative and significant influence on earning management, which means that an increase in financial stability is followed by a decrease in earnings management practices. In testing the moderating variable, the audit committee is proven to be able to moderate by weakening the effect of financial stability on earnings management. Conversely, managerial ownership and independent commissioners were found unable to effectively moderate the relationship in accordance with agency theory expectations. The implication of this study emphasizes the importance of strengthening internal oversight functions, particularly the audit committee, in suppressing opportunistic management actions when companies face financial stability pressures.]]>
Copyrights © 2026
