The Influence of Firm Size, Ownership Structure, Leverage, and Audit Quality on Earnings Management (Case Study on Manufacturing Companies Listed on the IDX for the 2015-2019 Periode) Retnaning Ayu Dyah Sawitri (a*), Novrida Qudsi Lutfillah (b), Triesti Candrawati (c)
Malang State Polytechnic
Jalan Soekarno Hatta No 9, Kec. Lowokwaru - Kota Malang - Prov. Jawa Timur, 65141, Indonesia
Abstract
This study aims to identify and analyze the factors that influence earnings management in manufacturing companies listed on the IDX. The method of determining sample used is purposive sampling in accordance with predetermined criteria. The total sample obtained is 36 manufacturing companies with time period of 2015-2019. This research is quantitative study with analytical technique used, namely multiple linear regression. The data used are annual report of 36 manufacturing companies. The results show that firm size and institutional ownership affect earnings management, but managerial ownership, leverage, and industry specialization auditors have no effect on earnings management. On the other hand firm size, managerial ownership, institutional ownership, leverage, industry specialization auditors together have an effect on earnings management. The results of this study are expected to be useful for regulators, investors, and other stakeholders so that they can make policies in preventing opportunistic earnings management practices that can harm various related parties.
