THE IMPACT OF LEVERAGE, SIZE, PROFITABILITY AND OWNERSHIP STRUCTURE ON EARNING MANAGEMENT IN INDONESIA BANKING SECTOR

Marisa Meidiawati  Afifah; Suwignyo  Widagdo; Nurshadrina Kartika  Sari

doi:10.31967/prmandala.v3i0.463

Marisa Meidiawati Afifah STIE Mandala
Suwignyo Widagdo STIE Mandala
Nurshadrina Kartika Sari STIE Mandala

DOI: https://doi.org/10.31967/prmandala.v3i0.463

Abstract

This research aims to analyze the influence of leverage, size, profitability and ownership structure to earning management in Indonesia banking sector. We used institutional ownership and managerial ownership for ownership structure. Data was collected from 40 banking companies in 2014 until 2019 as the sample and used purposive sampling. This study used multiple linear regression analysis techniques to determine the effect of each independent variable on the dependent variable. We found that leverage and profitability have a significant impact on earnings management, and size and ownership structure have no significant impact on earning management.

Keywords: Earning management, banking sector, ownership structure.