The Effect of Profitability, Liquidity, Company Size, andInstitutional Ownership On Earning management In IndustrialSector Companies Listed On The Indonesia Stock Exchange In2019-2022

The Effect of Profitability, Liquidity, Company Size, andInstitutional Ownership On Earning management In IndustrialSector Companies Listed On The Indonesia Stock Exchange In2019-2022

Profitability, Return On Assets, Net Profit Margin, Return On Equity, Liquidity,CurrentRatio,QuickRatio,CashRatio,CompanySize,InstitutionalOwnership,AndEarningManagement

Earningmanagementisanimplementationcarriedoutbythecompany'smanagementtocarry outactionstomanipulate financialstatementsinorder toachievecertain targets. This study was conducted with the aim to find the effect of profitability,liquidity, company size, and institutional ownership on earning management. The populationof this study is an industrial sector company listed on the Indonesia Stock Exchange for theperiod2019-2022.Samplingtechniquesusingpurposivesamplingandobtainedby19companies.Dataanalysisusingmultiplelinearregression.Theresultsshowedthatprofitability measured using Return on Assets has no effect on earning management, NetProfitMarginhas an effecton earning management, Return on Equity has an effectonearning management. Liquidity as measured by The Current Ratio, Quick Ratio, and CashRatio does not affect earning management. The size of the company is measured by thenatural logarithm of total assets resulting in the size of the company has an affects earningmanagement. Institutional ownership is measured by the division between theownership ofthe number of shares of the institution and the number of shares outstanding, resulting in thatinstitutional ownership has no effect on earning management. High and low return on assets,liquidity, and institutional ownership have no effect on earning management. But the higherthe value of net profit margin, return on equity,and company size in a company, the lowerthe value of earning management. Conversely, the lower the value of net profit margin, returnonequity, andcompanysize,the value ofearning management valueincreases

NaufalSyafiqoh1,MahameruRosyRochmatullah2

https://dinastipub.org/DIJEFA/article/view/3117/1963

UniversityofMuhammadiyahSurakarta

4August2024

PDF

English

Text