Vol. 17 No. 2 (2014), Articles
Vol. 17 No. 2 (2014)

Analysis of firm size, leverage, corporate governance on earnings management practices (Indonesian evidence)

Articles
DOI: 10.14414/jebav.v17i2.308
Published 01-08-2014
Indra Satya Prasavita Amertha
University of Udayana
I Gusti Ketut Agung Ulupui
University of Udayana
I Gusti Ayu Made Asri Dwija Putri
University of Udayana
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Keywords

Earnings Management
Discretionary Accruals
Firm Size
Leverage
Corporate Governance

How to Cite

Prasavita Amertha, I. S., Agung Ulupui, I. G. K., & Made Asri Dwija Putri, I. G. A. (2014). Analysis of firm size, leverage, corporate governance on earnings management practices (Indonesian evidence). Journal of Economics, Business, and Accountancy Ventura, 17(2), 259-268. https://doi.org/10.14414/jebav.v17i2.308
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Abstract

The inconsistency of the results in previous studies related to the  relationship of firm size and leverage on earnings management practices is still interesting. In contrast to  the previous studies, this study is not merely to determine the effect of firm size, leverage,and corporate governance on earnings management practices partially but also to include the variable corporate governance (CG) is also thought to be able to moderatethe effect of firm size and leverage variables on earnings management practices.Discretionary accruals as proxy for earnings management and are also measured using Performance-Matched Discretionary Accruals Model. Using Moderated Regression Analysis (MRA) and Residual Test, the result shows that firm size and corporate governance have a significant effect on earnings management, whereas the leverage was not found to have a significant effect. In addition, the results of this study indicate that corporate governance is able to moderate the relationship firm size and leverage on earnings management practices.