The Effect of Board of Commissioners Size on Earnings Management with Audit Committee as a Moderation in Companies Listed on LQ45

Abstract

Earnings management is an agency problem that is often triggered by the separation of roles or differences in interests between shareholders and company management. This study aims to examine the effect of the size of the board of commissioners on earnings management with the audit committee as a moderating variable. This study was conducted in Indonesia with companies listed on the LQ45. The population of this study was all companies listed on the LQ45 for the 2019-2023 period, namely 45 companies with an observation period of 5 years. The sampling method used was purposive sampling, which is a method of determining samples based on certain criteria or considerations. The data analysis technique used was multiple linear regression analysis, but before the regression analysis was carried out, a prerequisite test must be carried out, namely the classical assumption test. Moderated Regression Analysis (MRA) was used to determine whether the audit committee variable could strengthen or weaken the relationship between the size of the board of commissioners and earnings management. Based on the results of the analysis and discussion in the previous chapter, the conclusion that can be drawn is that the size of the board of commissioners has a positive effect on earnings management in companies listed on the LQ45, and the audit committee is unable to moderate the effect of the size of the board of commissioners on earnings management in companies listed on the LQ45