Research Paper
Year: 2022 | Month: July-September | Volume: 6 | Issue: 3 | Pages: 77-86
DOI: https://doi.org/10.52403/gijash.20220711
The Influence of Financial Factors on Profit Management with Good Corporate Governance as a Moderating Variable (Empirical Study on Manufacturing Companies in the Goods and Consumption Industry Sector listed on the Indonesia Stock Exchange 2015-2019)
Ilham Multama1, Risa Wahyuni EDT2, Winona Kumara Dewi3
1,2,3University of West Sumatra, Indonesia
Corresponding Author: Ilham Multama
ABSTRACT
This study aims to analyze that (1) the influence of financial factors on earnings management; (2) the influence of financial factors on earnings management is moderated by good corporate governance. The population of this study are all manufacturing companies in the goods and consumption industrial sector listed on the Indonesian stock exchange in 2015-2019. The sample was selected using purposive sampling method and resulted in a selected sample of 175 companies. Analysis of the data used is the Partial Least Square method. The results of the study indicate that financial factors have a significant and significant effect on earnings management. With the magnitude of the influence of 70.5% while 29.5% is influenced by other factors. The results of the study of financial factors on earnings management with good corporate governance as a moderating variable and significant influence. The magnitude of the influence is 15.8% while 84.2% is influenced by other factors.
Keywords: Financial Factors, Earnings Management, Good Corporate Governance
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