The Effect of Managerial Ownership, Profitability and Leverage on Earnings Management with Audit Quality as a Moderating Variable (A Study of Primary Consumer Goods Manufacturing Companies Listed on the Indonesia Stock Exchange during the 2020–2023 Period)

Wulandari Nurtiara; Yudi Yudi; Misni Erwati

doi:10.55927/fjmr.v4i7.290

Authors

Wulandari Nurtiara University of Jambi
Yudi Yudi University of Jambi
Misni Erwati University of Jambi

DOI:

https://doi.org/10.55927/fjmr.v4i7.290

Keywords:

Managerial Ownership, Profitability, Leverage, Audit Quality, Earnings Management

Abstract

Earnings management remains a concern in corporate governance, especially in emerging economies with prevalent agency conflicts. This study examines how managerial ownership, profitability, and leverage affect earnings management and tests whether audit quality moderates these links. Using 128 firm-year observations from 32 primary consumer goods firms listed on the IDX for 2020–2023, the analysis applies Partial Least Squares Structural Equation Modeling (PLS-SEM) via WarpPLS 8.0, with discretionary accruals from the Modified Jones Model as the proxy. The results show managerial ownership and leverage significantly increase earnings management (p < 0.01), while profitability has no effect. Audit quality reduces the impact of profitability on earnings management but does not moderate the other links. The findings provide evidence on governance practices in Indonesia and highlight the need for stronger audit oversight.

References

Almuzaiqer, M. A., Fatima, A. H., & Ahmad, M. (2022). Royal Family Members and Corporate Governance Characteristics: the Impact on Earnings Management in UAE. International Journal of Business and Society, 23(2), 689–713. https://doi.org/10.33736/IJBS.4834.2022

Asyati, S., & Farida, F. (2020). Pengaruh Good Corporate Governance, Leverage, Profitabilitas dan Kualitas Audit terhadap Praktik Manajemen Laba (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Periode 2014-2018). Journal of Economic, Management, Accounting and Technology, 3(1), 36–48. https://doi.org/10.32500/jematech.v3i1.1073

Devanka, D., Endiana, I. D. M., & Kumalasari, P. D. (2022). Analisis Faktor-Faktor Yang Mempengaruhi Manajemen Laba Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2018-2020. Jurnal Kharisma, 4(1), 85–96. https://ejournal.unmas.ac.id/index.php/kharisma/article/download/4540/3525

Elhawary, E., & Hassouna, D. (2021). Earnings Management Determinants: a Study of Egyptian Listed Firm Characteristics Post the Egyptian Revolution. Corporate Governance and Organizational Behavior Review, 5(2 Special Issue), 165–183. https://doi.org/10.22495/cgobrv5i2sip5

Fagbemi, T. O., Osemene, O. F., & Agbaje, O. (2020). Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria. Jurnal Administrasi Bisnis, 9(1), 1–14. https://doi.org/10.14710/jab.v9i1.28576

Fidelia, & Ardillah, K. (2022). Pengaruh Kepemilikan Manajerial, Konservatisme Akuntansi, dan Asimetri Informasi terhadap Manajemen Laba pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2017-2019. KALBISIANA Jurnal Sains, Bisnis Dan Teknologi, 8(3), 3445–3458. http://112.78.142.42/index.php/kalbisiana/article/view/1554/498

Helmi, S. M., Kurniadi, A., Anam, M. K., & Soraya Nurfiza. (2023). Pengaruh Profitabilitas Dan Kualitas Audit Terhadap Manajemen Laba Dengan Ukuran Perusahaan Sebagai Variabel Moderasi. Jurnal Akuntansi Trisakti, 10(1), 51–68. https://doi.org/10.25105/jat.v10i1.15496

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 4, 305–360. http://papers.ssrn.com/abstract=94043

Joe, S., & Ginting, S. (2022). Pengaruh Ukuran Perusahaan, Leverage, dan Profitabilitas terhadap Manajemen Laba. Journal of Education, Humaniora and Social Sciences (JEHSS), 5(2), 1641–1648. https://doi.org/10.34007/jehss.v5i2.1520

Kirimi, P. N., Kariuki, S. N., & Ocharo, K. N. (2022). Ownership structure and financial performance: Evidence from Kenyan commercial banks. PLoS ONE, 17(5 May), 1–20. https://doi.org/10.1371/journal.pone.0268301

Listiyani, D., & Nuswandari, C. (2024). the Effect of Good Corporate Governance and Profitability on Earnings Management. Journal of Economic, Business and Accounting, 7(2), 134. https://doi.org/10.60090/kjm.v2i2.593.134-144

Oktaviana, F., & Rivandi, M. (2023). Ukuran Perusahaan Dan Leverage Terhadap Manajemen Laba Pada Perusahaan Transportasi Tahun 2019 – 2021. Jurnal Mahasiswa Manajemen Dan Akuntansi, 2(1), 22–30. https://doi.org/10.30640/jumma45.v2i1.939

Prawida, N., & Sutrisno, S. (2021). Leverage, profitability, corporate governance mecanism and earning management: cases in manufacturing company in Indonesia Stock Exchange. Asian Management and Business Review, 1(1), 35–45. https://doi.org/10.20885/ambr.vol1.iss1.art4

Purnama, Y. M., & Taufiq, E. (2021). Pengaruh Profitabilitas, Leverage, Firm Size, Dan Earnings Power Terhadap Manajemen Laba Pada Perusahaan Sektor Properti Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2019. Journal of Accounting, Finance, Taxation, and Auditing (JAFTA), 3(1), 71–94. https://doi.org/10.28932/jafta.v3i1.3280

Purwanti, P. I., Kepramareni, P., & Pradnyawati, S. O. (2021). Pengaruh Corporate Governance, Ukuran Perusahaan Dan Leverage Terhadap Manajemen Laba Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2017-2019. Jurnal Kharisma, 3(1), 197–206. https://ejournal.unmas.ac.id/index.php/kharisma/article/view/1693

Puspitasari, E. P., Nur, D., & Mawardi, M. C. (2019). Pengaruh Faktor Good Corporate Governance, Free Cash Flow, dan Leverage Terhadap Manajemen Laba Pada Perusahaan Batu Bara. E-Jra, 08(03), 87–100.

Roslita, E., & Daud, A. (2019). Pengaruh Kepemilikan Saham, Profitabilitas, Leverage, dan Pajak Tangguhan Terhadap Manajemen Laba Dengan Kualitas Audit Sebagai Variabel Pemoderasi. Jurnal Manajemen Biisnis, 22(2), 213–234.

Rosyidah, N., & Rahayu, R. A. (2024). Effect of Audit Quality as A Moderator Between Managerial Ownership, Leverage, Free Cash Flow, and Profitability on Earnings Management. 2, 196–219.https://doi.org/10.20473/baki.vxix.xxxxx

Sari, N. P., & Khafid, M. (2020). Peran Kepemilikan Manajerial dalam Memoderasi Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Kebijakan Dividen Terhadap Manajemen Laba pada Perusahaan BUMN. Moneter - Jurnal Akuntansi Dan Keuangan, 7(2), 222–231. https://doi.org/10.31294/moneter.v7i2.8773

Savitri, D., & Priantinah, D. (2019). Pengaruh Leverage Terhadap Manajemen Laba Dengan Corporate Governance Sebagai Variabel Pemoderasi Pada Perusahaan Manufaktur Sektor Aneka Industri Yang Terdaftar Di Bei Periode 2013-2016. Nominal: Barometer Riset Akuntansi Dan Manajemen, 8(2), 179–193. https://doi.org/10.21831/nominal.v8i2.26543

Sholihin, M., & Ratmono, D. (2020). Analisis SEM-PLS dengan WarpPLS 7.0 untuk Hubungan Nonlinier dalam Penelitian Sosial dan Bisnis (C. Mitak (ed.); 2nd ed.). Yogyakarta: ANDI.

Suheny, E. (2019). Pengaruh Corporate Governance, Ukuran Perusahaan, Leverage, Dan Kualitas Audit Terhadap Manajemen Laba. Jurnal Ekonomi Vokasi, 2(1), 1–18. https://e-jurnal.lppmunsera.org/index.php/JEV/article/view/1060/925

Sujarweni, V. W. (2020). Metodelogi Penelitian Bisnis & Ekonomi. Yogyakarta: Pustaka Baru Press.

Umah, A. khiarotul, & Sunarto, S. (2022). Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan Pada Perusahaan Manufaktur Tahun 2016 – 2018. Jurnal Ilmiah Mahasiswa Akuntansi, 13(2), 531. https://doi.org/10.24912/jpa.v3i2.11807

Wowor, J. C., Morasa, J., Rondonuwu, S., Ekonomi dan Bisnis, F., & Akuntansi, J. (2021). Pengaruh Profitabilitas Terhadap Manajemen Laba Pada Perusahaan Sektor Consumer Goods Industry Di Bursa Efek Indonesia (BEI). Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 9(1), 589–599. https://ejournal.unsrat.ac.id/index.php/emba/article/view/32400

Yahya, A., & Wahyuningsih, D. (2020). Pengaruh Perencanaan dan Aset Pajak Tangguhan Terhadap Manajemen Laba Pada Perusahaan Telekomunikasi dan Konstruksi Yang Terdaftar di Bursa Efek Indonesia Periode 2013 – 2017. Sosiohumanitas, 21(2), 86–92. https://doi.org/10.36555/sosiohumanitas.v21i2.1242

Zulfia, G., Setyowati, T., & Komara. (2023). Pengaruh Profitabilitas, Risiko Keuangan, dan Pertumbuhan Perusahaan Terhadap Manajemen Laba Pada Perusahaan Manufaktur Yang Terindeks Lq45 Di Bursa Efek Indonesia Periode 2016-2021. JMBI UNSRAT (Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi)., 10(3), 1774–1788. https://doi.org/10.35794/jmbi.v10i3.50468