The Impact of Audit Standards, Firm Features, and Share Ownership on Earnings Management Techniques

Purpose: This study investigates the impact of ownership structure, corporate characteristics, and audit quality on earnings management practices among non-financial firms listed on the Indonesia Stock Exchange (IDX) between 2018 and 2023.Methods: The research examines non-financial companies listed on the Indonesia Stock Exchange (IDX) between 2018 and 2023. The impact of various independent variables on discretionary accruals is investigated through the use of a multiple regression model analysisFindings: Significant positive relationships were found between company growth, performance, and firm age with discretionary accruals, indicating that firms experiencing higher growth and performance, as well as older firms, are more likely to engage in earnings manipulation. Firm size also showed a positive, though marginally significant, effect on discretionary accruals. However, audit quality, board size, managerial ownership, and institutional ownership did not exhibit significant impacts on earnings management.Novelty: This study contributes to the literature by providing updated insights into how various corporate and ownership characteristics influence earnings management in the Indonesian market, highlighting the nuanced roles of audit quality and governance structures.Implications: The findings suggest that enhancing corporate governance frameworks and focusing on internal control mechanisms may be more effective in curbing earnings manipulation than solely relying on audit quality or ownership structures. This has practical implications for regulators and firms aiming to improve financial reporting standards and transparency.

• Publication year

  2024

• Venue

  Advances in Management Innovation

• Publication date

  2024-09-10

• Fields of study

  Not labeled

• Identifiers
  DOI 10.69725/ami.v1i1.94
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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