EARNINGS MANAGEMENT AND ITS DETERMINANT (STUDY OF LISTED COMPANIES ON INDONESIA STOCK EXCHANGE)
Ruth Samantha Hamzah, Efva Octavina Donata Gozali, Nur Khamisah
Abstract
The study aims to identify the determinant factors that affecting earning management practices of companies. We used firm size, age, leverage (DER) and profitability (ROA) as independent variables in term of earnings management detection. There were 344 listed companies in Indonesian Stock Exchange at the year of 2017 and 2018, thus there were 688 observed companies as samples. Purposive sampling and multiple regression were employed as sampling and analysis method, respectively. The results show that firm size, age and ROA have a significant effect toward earnings management, whilst DER has no significant effect towards earning management. In addition, earnings management detection provides information to investors and potential investors in decision making process.
Keywords
earnings management; firm size; firm age; DER; ROA
DOI:
https://doi.org/10.29259/ja.v15i1.13078
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Akuntabilitas Jalan Raya Palembang-Prabumulih Km. 32 Jurusan Akuntansi, Fakultas Ekonomi Universitas Sriwijaya Indralaya, Sumatera Selatan, Indonesia Email: jurnal.akuntabilitas@unsri.ac.id , Tel/Fax : (0711) 580964
p-ISSN: 1978-4392 , e-ISSN:2685-7030
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