The effect of company size and leverage on earnings management practices in food and beverage sub-sector companies on the Indonesian stock exchange
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Published:
Mar 30, 2021
Keywords:
Earning Management, firm size, everage
Section
Articles
Statistics Article
Article View : 160 Times
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Abstract
The objective of the research is to find out empirical evidence of the influence of firm size and leverage on earnings management. The population of this study were listed foods and beverages companies in the Indonesia Stock Exchange. The sample was determined based on the following criteria: (a) the annual report ended December 31, and (b) available and published on the Indonesia Stock Exchange website during the research period. There were 12 companies complying with the criteria. Data analysis was carried out in terms of pool cross-section covering the annual financial report during 2004-2008. The research hypotheses were tested using multiple regression analysis. Firm size was measured by logarithm, leverage was measured by debt to equity ratio and earnings management was estimated by Utami model.
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How to Cite
Handayani, M. K. (2021). The effect of company size and leverage on earnings management practices in food and beverage sub-sector companies on the Indonesian stock exchange. Indonesia Auditing Research Journal, 10(`1), 1–6. Retrieved from https://journals.iarn.or.id/index.php/ARJ/article/view/35
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Ghozali, Dr. Priest. 2005. Application of Multivariate Analysis with the SPSS Program.
Publishing Agency: Dipenogoro University, Semarang.
Gujarati, Damodar and Sumarno Zain. 2004. Basic Econometrics, Fourth Edition.
The McGraw-Hill Companies.
Halim, Julia, Carmel Meiden, Rudolf Lumban Tobing. 2005. Effect of Earnings Management on Level Disclosure of Financial Statements in Manufacturing Companies included in LQ-45. Symposium National Accounting VIII Solo. Indonesian Accountants Association.
Juniarti and Corolina. 2005. Analysis of Factors Influencing Income Smoothing Smoothing) On Go Public Companies, Journal of Accounting & Finance Vol 7 No. 2.
Kusuma, Hardi. 2006. The Impact of Earnings Management on the Relevance of Accounting Information: Empirical Evidence from Indonesia. Journal of Accounting & Finance Vol 8 No. 1.
Ma'ruf, Muhammad. 2006. Analysis of Factors Influencing Earning Management in Go Public Companies in Indonesia. Faculty of Economics, Indonesian Islamic University, Yogyakarta.
Masodah. 2007. Profit Smoothing Practices in the Banking Industry and Other Financial Institutions Sector and Other Factors That Influence It. ISSN: 1858- 2559 Vol.2.
Mpaata, Kaziba A and Agus Sartono. 1997. Factor Determining Price Earnings (P/E) Ratio. Manage. No. 15/IV/1997. pp. 133–150.
Murdoko Sudarmadji, Ardi and Lana Sularto. 2007. Effect of Company Size, Profitability, Leverage, and Type of Company Ownership on the Area of Voluntary Disclosure of Financial Statements. Gunadarma Campus Auditorium, Vol 2. Depok.
Rahmawati, Yacob Sumarno, Nurul Qamariyah. 2006. The Effect of Information Asymmetry on Profit Management Practices of Public Banking Companies Listed on the Jakarta Stock Exchange. National Symposium on Accounting IX, Padang.
Ratmono, Dwi and Nur Cahyonowati. 2005. Earnings-Based Market Anomalies and Abnormal Accruals Persistence. National Symposium on Accounting VIII, Solo. Indonesian Accountants Association.
Rivai, Prof. Dr. H. Veithzal, MBA. 2007. Credit Management Handbook. PT Raja Grafindo Persada: Jakarta.
Tarjo. 2007. Effect of Concentration of Institutional Ownership and Leverage on Profit Management, Shareholder Value and Cost of Equity Capital. Trunojoyo University, Bangkalan, Madura.
Ulupui, I GKA 2001. Analysis of the Effect of Liquidity Ratios, Leverage, Activity, and Profitability on Stock Returns. Department of Accounting, Udayana University, Bali.
Utami, Wiwik. 2006. The Effect of Earnings Management on the Cost of Equity Capital (Studies in Manufacturing Sector Public Companies), Journal of Accounting & Finance Vol 9 No. 2.
Veronica NP Siregar, Sylvia and Siddhartha Utama. 2005. Effect of Ownership Structure, Company Size, and Corporate Governance Practices on Profit Management. VIII National Sympsyum of Accounting. Indonesian Accountants Association.
Widyaningdyah AU 2001. Analysis of Factors Influencing Earning Management in Go Public Companies in Indonesia. Journal of Accounting & Finance Vol 3 No. 2.
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