Proceedings of The 2nd International Conference On Advance And Scientific Innovation, ICASI 2019, 18 July, Banda Aceh, Indonesia

Research Article

The Effect Of Leverage And Earning Per Share On Earning Management (A Study Of Companies Listed In Indonesia Stock Exchange)

Download88 downloads
  • @INPROCEEDINGS{10.4108/eai.18-7-2019.2288646,
        author={Trie  Nadilla and Almira Keumala Ulfah and Husna  Hayati and Shelly  Midesia and Desy  Puspita},
        title={The Effect Of Leverage And Earning Per Share On Earning Management (A Study Of Companies Listed In Indonesia Stock Exchange)},
        proceedings={Proceedings of The 2nd International Conference On Advance And Scientific Innovation, ICASI 2019, 18 July, Banda Aceh,  Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2019},
        month={11},
        keywords={leverage earning per share earning management lq 45 idx},
        doi={10.4108/eai.18-7-2019.2288646}
    }
    
  • Trie Nadilla
    Almira Keumala Ulfah
    Husna Hayati
    Shelly Midesia
    Desy Puspita
    Year: 2019
    The Effect Of Leverage And Earning Per Share On Earning Management (A Study Of Companies Listed In Indonesia Stock Exchange)
    ICASI
    EAI
    DOI: 10.4108/eai.18-7-2019.2288646
Trie Nadilla1,*, Almira Keumala Ulfah2, Husna Hayati3, Shelly Midesia4, Desy Puspita5
  • 1: Islamic Finance Accounting Department, IAIN Lhokseumawe1, Indonesia
  • 2: Economic Law Department, IAIN Lhokseumawe, Indonesia
  • 3: Islamic Finance Accounting Department, IAIN Lhokseumawe, Indonesia
  • 4: Islamic Economics and Business Faculty Department, IAIN Langsa, Indonesia
  • 5: Public Sector Financial Management Department, Politeknik Kutaraja Banda Aceh, Indonesia
*Contact email: trienadilla0303@gmail.com

Abstract

This study investigates the relationship between leverages, earning per share (EPS) and earning management. Using discretionary accrual as a proxy for earning management. For measuring Accrual Earning Management (AEM), revenue discretionary model and revenue model (model stubben) are used in the study. The sampling technique used purposive sampling and a regression method for panel data, namely fixed effect based on the Hausman test result. Panel data regression models are applied for the period from 2016-2018 on a sample size of 31 companies listed on Indonesia stock exchange, taking LQ 45 index as a benchmark. The data analysis testing employed Eviews (Econometric View). The result showed leverage affect on the earning management negatively and earning per share (EPS) affect on the earning management positively.