PROFITABILITY, LEVERAGE, COMPANY SIZE, AUDIT OPINION AND PROFIT MANAGEMENT

Rina Sari, Anna Saputri

Abstract


The aim of this study is to empirically examine the effect of profitability,  leverage, firm size, and audit opinion on earnings management. The research population is energy sector companies listed on the Indonesia Stock Exchange for the 2019-2021 period. The sampling technique used a purposive sampling method, with the final sample being 23 energy companies, the total data being 69 observational data. The analytical method used is multiple linear regression analysis with the help of the SPSS Version 25 program. The results show that profitability and firm size have a positive effect on earnings management, while leverage and audit  opinion have no  effect  on  earnings management. Subsequent research can use other variables or replace proxies and add sectors and years of research.

Full Text:

PDF

References


Agustia, Y. P., &; Suryani, E. (2018). Journal of Assets (Research Accounting). ASET Journal (Research Accounting, 10(1), 63–74. https://doi.org/10.17509/jaset.v10i1.12571

Alhana et al. (2017). A Study on Audit Opinion and Earning Management between pn17 Companies and Healthy Companies. International Journal of Business, Economics and Law, 12(1), 6–12.

Andryana, A., &; Purnamasari, P. (2016). The Effect of Audit Committee Effectiveness and Previous Year's Audit Opinion on Profit Management on Manufacturing Company (Listed on Indonesia Stock Exchange in 2011-2012). Accounting Proceedings, 279–284. www.idx.co.id

Fandriani, V., &; Tunjung, H. (2019). Effects of Profitability, Leverage, Size Company and Quality Audit of Profit Management. Journal Multiparadigm Accounting, 1(2), 505–514.

Fargher, N. L., Michael, S. W., & Lori M. Holder-Webb. (2001). Initial Technical Violations of Debt Covenants and Changes in Firm Risk. Journal of Business Finance and Accounting, 28(3&4).

Gusmiarni, D., & Soeparyono, R. D. (2020). The Effect Of Financial Destress, Free Cash Flow, Profitability, And Leverage On Profit Management With Audit Quality As A Moderated Variable. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(6), 7767–7786.

Indonesian Institute of Accountants. (2015). Financial Accounting Standards, as of January 1, 2015. Salemba Four.

Khasanah, A. (2020). Effects of Leverage, Corporate Growth, Tenure Audit, Audit Opinion and Profitability on Profit Management Study on Companies Manufacturing Listed on the Indonesia Stock Exchange in 2015-2019. University of Muhammadiyah Magelang.

Kurniati, A., &; Tabrani, M. (2017). The Effect of Audit Opinion, Solvency and Institutional ownership of timeliness of delivery Financial Statements (Case Studies on Basic Industrial Companies and Chemicals Listed on Indonesia Stock Exchange). Tabrani, M, 2(1).

Mahdalena, N., Son, A. P., &; Daughter, G. A. (2019). Corporate Influence Governance, Ownership Structure and Leverage on Management Profit (Study on Companies Going Public in the Mining Sector

listed on Indonesia Stock Exchange in 2015-2018). Dewantara Management, 3(1), 181–191.

Mardianto, F. (2020). Effects of Profitability, Leverage, Company Size and Quality of Audit of Profit Management. Putera Batam University.

Prasojo, P., &; Fatayati, I. R. (2018). The Effect of Company Performance on Practice Profit Management in Indonesian Sharia Stock Index Issuers. Accountability, 11(1), 183–202. https://doi.org/10.15408/akt.v11i1.8763

Full Moon, D. (2017). Effects of Profitability, Leverage, Company Size, Institutional Ownership and Managerial Ownership of Profit Management. Journal of Financial and Accounting Research, 3(1).

Rahayu, A. (2020). Effects of Audit Quality, Leverage, Managerial Ownership, Institutional Ownership, and Profit Management Against Opinion Acceptance Audit (Case Study of Manufacturing Company Listed on IDX in 2014–2016). Semarang State University.

Ronikusuma, F. Y., &; Hadiprajitno, P. T. B. (2018). Effects of Cash Flow Surplus Free, Audit Quality, Leverage, Company Size, and Relative Cash Flow Against profit management. Diponegoro Journal of Accounting, 7(3), 1–15. http://ejournal-s1.undip.ac.id/index.php/accounting


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.