Pengujian Earning Management dan Leverage Terhadap Efisiensi Investasi

Abstract

This research aims is to investigate the effect of earnings management and leverage from business activities in the previous period on investment efficiency in the current period. The sample consisted of 46 banking companies listed on the Indonesia Stock Exchange during the 2019-2023 period and was selected using a purposive random sampling technique. The data obtained was 195 after deducting outliers and then analyzed using multiple regression. The results of this research prove that earnings management practices in the previous period had a significant negative effect on overinvestment in the current period. These earnings management practices also correlate with the level of liquidity in the same period. Meanwhile, leverage in the previous period had a significantly positive effect on underinvestment in the current period especially in large companies.