PENGARUH PROFITABILITAS, MEKANISME GOOD CORPORATE GOVERNANCE DAN LEVERAGE TERHADAP MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2017-2019
The income statement is one of the indicators used to estimate the company's operating performance over a certain period. Earnings management is an act of company management to manipulate the financial reporting process by increasing or decreasing company profits through accounting method policies by obtaining personal profits. This study aims to test and obtain empirical evidence of the effect of profitability, good corporate governance mechanisms and leverage on earnings management in manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2019 period.
The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The sample in this study were 21 manufacturing companies. The method of determining the sample in this study uses the nonprobability sampling method, more specifically, namely the purposive sampling technique. Data were analyzed using multiple linear regression analysis.
The results showed that the variable profitability had a positive effect on earnings management, the independent board variable had a negative effect on earnings management, while institutional ownership, managerial ownership, audit committee and leverage had no effect on earnings management. Further research can develop this research by using other variables that theoretically have an influence on the earnings management, such as information asymmetry, company size.