Research Article
The Effect of Earnings Management and Leverage on Stock Returns with Audit Quality as a Moderating Variable
@INPROCEEDINGS{10.4108/eai.19-9-2023.2340501, author={Vaskha Yermiana and Nasirwan Nasirwan and Chandra Situmeang}, title={The Effect of Earnings Management and Leverage on Stock Returns with Audit Quality as a Moderating Variable}, proceedings={Proceedings of the 8th Annual International Seminar on Transformative Education and Educational Leadership, AISTEEL 2023, 19 September 2023, Medan, North Sumatera Province, Indonesia}, publisher={EAI}, proceedings_a={AISTEEL}, year={2023}, month={12}, keywords={earning leverage audit return}, doi={10.4108/eai.19-9-2023.2340501} }- Vaskha Yermiana
Nasirwan Nasirwan
Chandra Situmeang
Year: 2023
The Effect of Earnings Management and Leverage on Stock Returns with Audit Quality as a Moderating Variable
AISTEEL
EAI
DOI: 10.4108/eai.19-9-2023.2340501
Abstract
The purpose of the research is to investigate the impact that earnings management and leverage have on stock returns, with the quality of audits serving as a moderating variable. In the time period between 2018 and 2020, this study focused on the manufacturing companies that are listed on the Indonesia Stock Exchange. This examination uses concepts from Agency Theory as well as Signaling Theory. 67 manufacturing businesses make up the study sample, and the data analysis methods include multiple linear regression analysis and Moderate Regression Analysis (MRA). The conditional revenue model that was developed by Stubben (2010) is used to assess earnings management. In the course of this research, the following possibilities were proposed: 1) The manipulation of earnings has a large and detrimental impact on the returns on stocks. Audit quality moderates the association between earnings management and stock returns. However, audit quality does not moderate the relationship between leverage and stock returns.It is necessary for the abstract to provide a synopsis of the whole work. At a minimum of 70 and no more than 150 words should be included in the abstract. It is recommended that the font size be set to 9 points and that it be offset from both the right and left margins by 1 centimeter. Before and after the abstract, there should be a line that is completely blank and set at 20 points.