THE EFFECT OF AUDIT QUALITY, COMPANY SIZE, AND LEVERAGE ON EARNINGS MANAGEMENT PRACTICES IN MANUFACTURING COMPANIES

Abstract

This research aims to empirically examine the effect of audit quality, firm size, and leverage on earnings management through quantitative approach. The population includes 43 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2019-2022. This research involves a combination of cross-sectional and time-series data analyzed by Panel Data Regression, utilizing CEM (Common Effect Model). The findings of the research suggest that (a) audit quality has a positive effect on earnings management, (b) firm size does not have an effect on earnings management, and (c) leverage has a negative effect on earnings management.