PENGARUH PROFITABILITAS TERHADAP MANAJEMEN LABA PADA PERUSAHAAN KEUANGAN DAN MANUFAKTUR

Abstract

One of the elements of concern in financial statement is information related to profit. The achievement of targeted profit is one of the indicators that is used to measure the success of the company in carrying out its business activities. This encourages management to intervene on the value of reported earnings. This study aims to determine the effect of profitability on earnings management. The samples in this study were financial and manufacturing companies those were listed on the Indonesia Stock Exchange in 2019. The analysis technique used was the multiple linear regression. The results showed that profitability had a positive effect on earnings management in financial companies, while in manufacturing companies, it was found that there was no effect of profitability on earnings management.