Factors Influencing Earnings Management Practices

Abstract

The purpose of this study was to obtain empirical evidence about the factors influencing earnings management practices. Quantitative method was used to conduct this study by using purposive sampling method. After selecting the company, there were 38 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2016-2019 as research samples. The hypotheses in this research were being tested by using SPSS program with multiple regression analysis method. As conclusion, company size, audit quality, institutional ownership, and managerial ownership have significant influence on earnings management practices. Meanwhile, profitability, leverage, board of directors, board of independent commissioners, and sales growth do not have influence on earnings management.