Factors Affecting Earnings Management in the Indonesian Stock Exchange

Nico Alexander ()
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Nico Alexander: Trisakti school of Management, Indonesia. Author-2-Name: Hengky Author-2-Workplace-Name: Trisakti school of Management, Indonesia.

GATR Journals from Global Academy of Training and Research (GATR) Enterprise

Abstract: "Objective � The purpose of this research is to analyze the effect of growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence toward earnings management. Methodology/Technique � The population of this research consist of various sectors of non-financial companies that were listed on the Indonesian Stock Exchange (IDX) between 2013 and 2015. The research uses three recent years of data and tests variables that have not been used by prior research. The sample was chosen by using a purposive sampling method. The hypothesis is tested using multiple regression with an SPSS program to investigate the influence of each independent variable to earnings management. Findings � The research results show that return on assets influences earnings management and growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence do not influence earnings management. Novelty � The study supports that the manager in a company will engage in earnings management to receive a bonus from investors because they have received a higher profit."

Keywords: "Earnings Management; Growth; Leverage; Fixed Asset Turnover; Profitability; Firm Size; Firm Age; Audit Quality; Auditor Independence; Industry" (search for similar items in EconPapers)
JEL-codes: L25 M12 M41 (search for similar items in EconPapers)
Pages: 7
Date: 2017-05-20
New Economics Papers: this item is included in nep-acc, nep-cfn and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Journal of Finance and Banking Review, Volume 2, Issue 2

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