THE EFFECT OF PROFITABILITY, LEVERAGE, AND FIRM SIZE ON ACCRUAL EARNINGS MANAGEMENT

Abstract

This study aims to investigate: (1) The effect of Profitability on Earnings Management; (2) The effect of Leverage on Earnings Management; (3) The effect of Firm Size on Earnings Management; (4) The effect of Profitability, Leverage, and Firm Size simultaneously on Earnings Management. The population of this research is manufacturing companies listed on Indonesia Stock Exchange period 2016-2018. The sample is selected by using purposive sampling. Based on criteria, 113 companies are selected, then research data are analysed in three reporting periods 0f 2016-2018, became the total population of 339 companies. The data analysis techniques using multiple regression analysis.  The result showd that (1) Profitability has a significant effect on earnings management; (2) Leverage has a significant effect on earnings management; (3) Firm Size has a significant effect on earnings management; (4) Profitability, Leverage, and Firm Size simultaneously has a significant effect on earnings management.