Abstract:This research examines the effect of Profitability and firm size on earnings management with managerial ownership as moderation. The total sample in this research as many as 60 companies listed in Indonesia Stock Exchange in the period 2012-2016. Test results show that profitability has a positive effect on earnings management and firm size negatively affect earnings management. Managerial ownership is not a moderating variable profitability and firm size influence on earnings management.
“…Semakin besar ukuran perusahaan, maka semakin tinggi nilai atau kekayaan perusahaan yang dapat digunakan dalam mendukung aktivitas operasional usaha. Adanya pengaruh yang negatif diantara variabel ukuran perusahaan dan variabel manajemen laba sesuai dengan paparan dari Swastika (2013), Purnama & Nurdiniah (2019) dimana pendapat tersebut didukung oleh Hassan & Ahmed (2012) yang menyatakan bahwa semakin besar ukuran perusahaan, maka semakin kecil pula pengelolaan manajemen laba yang dilakukan di perusahaannya.…”
Section: Pengaruh Ukuran Perusahaan Terhadap Manajemen Labaunclassified
This study aims to analyze the effect of ownership composition on earnings management in companies listed on the Indonesia Stock Exchange. This study method is quantitative research that emphasizes testing of variables through data in the form of numbers and analyzing data with statistical procedures. The population used in this study is the listed company from Indonesia Stock Exchange between 2016 – 2020 and for data testing tools using the SPSS 25 and Eviews 10. Ownership composition is represented by family ownership, institutional ownership, blockholder ownership, debt, firm size, return on equity and sales growth. The results of this study showed that debt is significantly positive on earnings management, sales growth is significant negative on earnings management. Meanwhile, family ownership, institutional ownership, blockholder ownership, firm size and return on equity show no significant results. All independent variables can explain the dependent variable by 31.45% based on the coefficient of determination test.
“…Semakin besar ukuran perusahaan, maka semakin tinggi nilai atau kekayaan perusahaan yang dapat digunakan dalam mendukung aktivitas operasional usaha. Adanya pengaruh yang negatif diantara variabel ukuran perusahaan dan variabel manajemen laba sesuai dengan paparan dari Swastika (2013), Purnama & Nurdiniah (2019) dimana pendapat tersebut didukung oleh Hassan & Ahmed (2012) yang menyatakan bahwa semakin besar ukuran perusahaan, maka semakin kecil pula pengelolaan manajemen laba yang dilakukan di perusahaannya.…”
Section: Pengaruh Ukuran Perusahaan Terhadap Manajemen Labaunclassified
This study aims to analyze the effect of ownership composition on earnings management in companies listed on the Indonesia Stock Exchange. This study method is quantitative research that emphasizes testing of variables through data in the form of numbers and analyzing data with statistical procedures. The population used in this study is the listed company from Indonesia Stock Exchange between 2016 – 2020 and for data testing tools using the SPSS 25 and Eviews 10. Ownership composition is represented by family ownership, institutional ownership, blockholder ownership, debt, firm size, return on equity and sales growth. The results of this study showed that debt is significantly positive on earnings management, sales growth is significant negative on earnings management. Meanwhile, family ownership, institutional ownership, blockholder ownership, firm size and return on equity show no significant results. All independent variables can explain the dependent variable by 31.45% based on the coefficient of determination test.
“…Research from Purnama and Nurdiniah (2018) explained that profitability affect positively to earnings management. It also corresponds to the research done by Khanh and Khuong (2018); Fitri et al (2018); Zakia et al (2019);and Pasaribu et al (2019).…”
Section: Relationship Of Managerial Ownership and Institutional Ownership Towards Earnings Management With Profitability As Moderating Vamentioning
This research aims to predict the effect of managerial ownership and institutional ownership towards earnings management with profitability as moderating variable.  The population of this research is 52 consumer goods industrial companies that are listed in Indonesia Stock Exchange year 2016-2018. The sample of this research consists of 18 consumer goods industrial companies which are chosen using purposive sampling method. Technique of data analysis carried out in this research are multiple linear regression analysis and moderated regression analysis. The result of the research states that managerial ownership does not affect negatively towards the earnings management. That is because the managerial ownership is not capable to be the media of the corporate governance which could decrease interest disharmony between management with owner or shareholder.  Besides, the percentage of managerial ownership in Indonesia is still low. So does institutional ownership does not negatively affect the earning management. It is because there are many institutions that less active in giving pressure to management activity and lacks of supervision towards the management’s work. Meanwhile, profitability with return on assets proxy is not able to weaken the effect of managerial ownership and institutional ownership towards earnings management. From the result of the research, it can be concluded that companies should increase the implementation of good corporate governance to decrease the practice of earning management. Besides, investors should be careful in their investments activities of a company.
“…Previous studies indicated a significant relation which found that larger firms use accounting manipulation more than other firms. Larger firms generally have more complex internal control systems than small firms, which reduces the likelihood of earnings management (Purnama & Nurdiniah, 2019;Sharf & Abu-Nassar, 2021).…”
Section: Company Size (Logsiz)mentioning
confidence: 99%
“…The ratio of return on assets is usually used as proxy of accounting performance (Purnama & Nurdiniah, 2019). Alzoubi (2016) found that the quality of earnings management is lower in companies with higher ROA, and document a negative association between ROA and discretionary accruals, while Lopes (2018) found that discretionary accruals are significantly and positively correlated with firm performance.…”
The relationship between audit quality and earnings management has not been tested with consideration of key audit matters as a mediating variable. This study examined whether audit quality (AQ) decreases earnings management (EM) in shareholding corporations through improving key audit matters (KAMs) in Jordan’s emerging environment. A regression analysis was carried out on a sample that included financial reports and auditor reports of 105 industrial and service shareholdings companies listed on the Amman Stock Exchange (ASE) from 2017 to 2019. The study found a negative relationship between audit quality and earnings management. The results showed that audit quality increases key audit matters, which, in turn, decreases earnings management. Also, the study confirmed the mediating effect of KAMs between audit quality and earnings management. The study confirms the importance of key audit matters to provide more relevant and useful information for the users of financial reports and provides important indications to the regulatory authorities and standards bodies that key audit matters should be given more attention regarding the way that they are presented and disclosed.
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