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The Influence of Capital Structure, Company Growth, Profitability, and Firm Size on Earnings Management

2021-11-30
Published
59-70
Pages
OPEN
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FF
Fathihani Fathihani
Fakultas Bisnis dan Ilmu Sosial, Program Studi Manajemen, Universitas Dian Nusantara, Jakarta, Indonesia
IN
Ibnu Haris Nasution
Fakultas Bisnis dan Ilmu Sosial, Program Studi Manajemen, Universitas Dian Nusantara, Jakarta, Indonesia
Abstract

Purpose: This study aims to examine and analyze the influence of capital structure, growth, profitability, and company size on earnings management in mining companies listed on the Indonesia Stock Exchange for the 2016–2018 period, both partially and simultaneously.

Research Methodology: The research design used was a multivariate analysis. This study used a causal approach with quantitative research methods. Sampling was conducted using purposive sampling, including those in the mining sector listed on the Indonesia Stock Exchange for the 2016–2018 period. Multiple linear regression was used as the analysis method.

Results: The results of this study indicate that the capital structure variable has an insignificant effect on the earnings management variable, the growth variable has a significant effect on the earnings management variable, the profitability variable has an insignificant effect on the earnings management variable, and the company size variable has an insignificant effect on earnings management.

Conclusions: The capital structure, growth, profitability, and company size variables simultaneously/jointly have a significant effect on earnings management.

Limitations: This study is limited to the mining companies listed on the Indonesia Stock Exchange (IDX) during the period 2016–2018, which may not fully represent the broader industrial landscape. The sample size and time frame may restrict the generalizability of the results to other sectors or periods. Additionally, the study does not account for external economic factors or qualitative aspects that could influence earnings management practices.

Contributions: This research contributes to the existing body of knowledge by providing an empirical analysis of the factors influencing earnings management in the mining sector. It specifically highlights the effects of capital structure, growth, profitability, and company size on earnings management practices, offering valuable insights for academics, regulators, and practitioners concerned with financial reporting quality in emerging markets.

Earnings Management Growth Profitability Size Company Structure Capital
How to Cite
Fathihani, F., & Nasution, I. H. (2021). The Influence of Capital Structure, Company Growth, Profitability, and Firm Size on Earnings Management. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 1(2), 59-70. https://doi.org/10.52909/jbemk.v1i1.29
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How to Cite

Fathihani, F., & Nasution, I. H. (2021). The Influence of Capital Structure, Company Growth, Profitability, and Firm Size on Earnings Management. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 1(2), 59-70. https://doi.org/10.52909/jbemk.v1i1.29
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