THE EFFECT OF QUALITY AUDITOR, CORPORATE GOVERNANCE, LEVERAGE AND PROFITABILITY ON EARNING MANAGEMENT (STUDY ON BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE 2016-2020)
Anathasia

Faculty of Economics and Business
Magister Management
Universitas Indonesia
Jl. Salemba Raya No.4, RW.5, Kenari, Kec. Senen, Kota Jakarta Pusat, Daerah Khusus Ibukota Jakarta 10430

Abstract

This study aimed at examining the impact of quality auditor, corporate governance, leverage and Profitability on earning management was extracted from the audited financial reports of the selected firms. The research method used is explanatory which is designed to analyse earnings management practice for 5 years. The populations in this study are conventional banks listed in IDX. The technique of determining the sample in this study is purposive sampling. The data source used in this study is the annual financial statements published during the year 2016 to 2020. The data analysis tool uses eviews, to test the hypothesis in this study using panel data regression analysis. The results of this study indicate that the quality auditor has effect on earnings management and good corporate governance variables consisting of independent commissioners and managerial ownership has effect on earnings management. The leverage and Profitability variable has no effect on earnings management. The benefit of these findings cross over all stakeholders in the company to create healthy financial institutions and a better economy.

Keywords: Earning Management, Quality Auditor, corporate governance, leverage, profitability, Conventional Banks.

Topic: Accounting and Corporate Governance