The Effect of Firm Size, Bonus Compensation and Leverage On Earnings Management

  • Ni Made Rahindayat Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Luh Putri Mas Mirayani Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • RR. Maria Yulia Dwi Rengganis Faculty of Economics and Business, Universitas Mahasaraswati Denpasar

Abstract

Earnings management is seen as a form of manipulation of firm
performance and is a management action in the process of preparing financial statements to influence the level of earnings displayed. This study aims to reexamine the effect of firm size variables, bonus compensation and leverage on earnings management. The sample in this study were 65 manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2018 period. Determination of the
sample using the purposive sampling method. The analytical tool used is Multiple Linear Regression Analysis. The results showed that firm size variables have a positive effect on earnings management, bonus compensation have no effect on earnings management, and
leverage have no effect on earnings management. 

Published
2020-11-30