The Effect of Debt on Earnings Management with Managerial Ownership as a Moderating Variable

Abstract

Earnings management practices can occur in various sectors, including the healthcare sector. In 2021, Healthcare Services Group, Inc. and its former CFO were sued for management practices. This study aims to examine the effect of debt on earnings management, with managerial ownership as a moderating variable. The population was 34, and the sample was 30 companies listed on the Indonesia Stock Exchange (IDX) for the 2021-2023 period. Ninety observations were obtained using nonprobability sampling and purposive sampling methods. Agency theory and positive accounting theory were used to support and explain this research. Data analysis in this study was conducted using STATA using moderated regression analysis. The results of this analysis indicate that debt has no positive effect on earnings management, and managerial ownership does not significantly strengthen the influence of debt on earnings management.