The Effect Of Profitability, Leverage, Company Size, And Good Corporate Governance On Profit Management In Manufacturing Companies Listed On The Indonesia Stock Exchange In 2020-2023

Abstract

The problems raised in this study are whether profitability (X1) affects earnings management (Y) in manufacturing companies listed on the IDX in 2020-2023, whether leverage (X2) affects earnings management (Y) in manufacturing companies listed on the IDX in 2020-2023,  whether independent boards of commissioners (X5) affect earnings management (Y) in manufacturing companies listed on the IDX in 2020-2023. The population in this study was 267 companies. The sample in this study was determined using a purposive sampling method, with a final sample size of 240 over four years of observation. The data analysis techniques used were descriptive analysis, classical assumption tests, multiple linear regression analysis, model feasibility tests (F tests), hypothesis tests (t tests), and coefficient of determination tests (R2). The results of the analysis showed a regression model of Y = 0.010 + 0.212X1 + 0.201X2 + 0.202X3 + 0.196X4 + 0.186X5 + e. The conclusions obtained were: (1) profitability has a positive effect on earnings management, (2) leverage has a positive effect on earnings management, (3) company size has a positive effect on earnings management, (4) good corporate governance, proxied by managerial ownership and an independent board of commissioners, has a positive effect on earnings management.