The Dynamics of Real Earnings Management: Analyzing the Effects of ROA, Company Size, and Leverage in Indonesia's Manufacturing Sector
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 07
Abstract
The objective of this research is to examine the impact of ROA, company size, and leverage on REM practices in Indonesia's manufacturing business sector from 2017 to 2021. This research examines financial report data from companies listed on the Indonesia Stock Exchange using a quantitative method with panel data analysis and multiple regression. According to the findings, the only variable that significantly affects REM is the leverage variable. However, there is no evidence that ROA or SIZE significantly affect REM. According to these results, REM practices are driven more by debt obligation pressure than by financial performance indicators or firm size within the earnings management environment. This research adds to the existing body of knowledge on earnings management strategies within the setting of Indonesian manufacturing organizations and deepens our understanding of the factors that impact REM. The research findings highlight the importance of financial strategy planning and earnings management in considering the impact of leverage. It also highlights that REM decisions are influenced by more complicated internal and external factors than just firm size and ROA.
Authors and Affiliations
Laela Lanjarsih
Keywords
Related Articles
- EP ID EP740990
- DOI 10.47191/jefms/v7-i7-77
- Views 57
- Downloads 0
The influence of Company Size, Business Risk, Profitability, Liquidity, and Asset Structure in Automotive Sector Industry Companies Listed On the IDX For The 2018-2020 Period
This study aims to analyze the effect of company size, business risk, profitability, liquidity, and asset structure on debt policy in automotive industry companies listed on the Indonesia Stock Exchange for the 2018-2020...
What Explains Differences in Early Child Development Between Urban and Rural Areas in Cameroun?
The objective of this paper is to identify factors that determine the difference in early child development between urban and rural areas of Cameroon. We have used the Fairlie (2005) decomposition method and the data col...
The Role of Strategic Planning In Improving Service Quality and Profitability of the Healthcare Industry: A Systematic Review
Strategic planning plays a pivotal role in enhancing service quality and profitability in the healthcare industry. This systematic review synthesizes findings from various studies conducted between 2019 and 2023, explori...
Effect of Leverage and Free Cash Flow on Earnings Management with an Independent Audit Committee as a Moderation
This study aims to examine the Effect of Leverage and Free Cash Flow on Earnings Management with the Independent Audit Committee as a Moderating Variable. The samples used were manufacturing companies in the basic and ch...
Current Status and Solutions for Developing Tourism in Phu an Bamboo Village in Binh Duong Province, Vietnam
Phu An Bamboo Village in Binh Duong Province is a nature reserve, aiming to preserve and develop bamboo - a typical cultural symbol of Vietnam. With its lush green landscape, rich ecosystem and educational value, Phu An...