Factors affecting the implementation of earnings management practices - case study: companies indexed in the capital market (Indonesia Stock Exchange)

• Autor(a) principal: Pasaribu, Husein
• Data de Publicação: 2023
• Outros Autores: Pasaribu, Hasan, Nanda, Wahyul Huda, Sabariah, Muda, Iskandar
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Revista Veras
• Texto Completo: https://ojs.brazilianjournals.com.br/ojs/index.php/BRJD/article/view/65908
• topic: earning management; capital market; IDX

The purpose of this study is to further understand what factors can affect the implementation of a Profit Management action in a company entity, especially those listed in the Capital Market of the Indonesia Stock Exchange. This research will adopt a qualitative approach with a literature review method where researchers will review and observe what factors might affect the implementation of profit management practices in companies engaged in several different types of sectors. The results will be presented using the literature study data analysis method. The results obtained by the researchers after carrying out a series of related procedures include; For manufacturing companies, profit management is not affected by financial distress in the 2016-2019 period, but financial distress actually affects profit management when entering the Covid-19 pandemic period accompanied by the influence of the accompanying Good Corporate Governance variables. In companies engaged in the infrastructure, utilities, and transportation sectors show financial distress and free cash flow have a significant effect on profit management, then in mining sector companies financial distress affects profit management but not the audit committee on profit management. Finally, in pharmaceutical companies, financial distress does not affect profit management, but variable leverage affects the implementation of profit management, and if leverage is accompanied by financial distress, it can have a significant effect on profit management.