Received: 2019-10-18  |  Accepted: 2020-04-17

Title

Determinants of earnings management: an empirical analysis


Abstract

The objective of this research is to acquire empirical evidence regarding the influence of firm size, firm leverage, firm age, audit quality, female directors, profitability, board size, audit committee size and board meeting towards earnings management of nonfinancial companies listed in Indonesia. Methodology/technique: the population under this research is non-financial companies listed on the Indonesian Stock Exchange (IDX) from 2014 to 2017. The samples were obtained secondarily are then selected through a purposive sampling technique by defining the sampling criteria. There were 127 non-financial companies listed on the Indonesian Stock Exchange which resulted in 508 data sets being available throughout the research. This research also uses hypothesis testing as part of the data analysis. The outcome of this research suggests that firm leverage, audit quality and profitability have an effect on earnings management for stable financial results. Meanwhile, firm size, firm age, female director, board size, audit committee size and board meeting do not have an effect on earnings management in non-financial companies listed on the Indonesian Stock Exchange.


Keywords

earnings management, firm size, firm leverage, firm age, audit quality, profitability


JEL classifications

G32 , G39


URI

http://jssidoi.org/jssi/papers/papers/view/540


DOI

10.9770/jssi.2020.9.4(13)

Authors

Wijaya, Novia
Trisakti School of Management
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Pirzada, Kashan
University Utara Malaysia
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Fanady, Chelsea
Trisakti School of Management
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Title

Journal of Security and Sustainability Issues


Issue date

2020


ISSN

ISSN 2029-7017 (print)
ISSN 2029-7025 (online)

Cited

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