The Effect of Firm Size, Audit Committee, Leverage and Institutional Ownership on Earnings Quality
Bambang Leo Handoko1, Ronaldo Horison2
1Bambang Leo Handoko*, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
2Ronaldo Horison, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
Manuscript received on January 05, 2020. | Revised Manuscript received on January 25, 2020. | Manuscript published on January 30, 2020. | PP: 4510-4516 | Volume-8 Issue-5, January 2020. | Retrieval Number: E6817018520/2020©BEIESP | DOI: 10.35940/ijrte.E6817.018520
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Management understands that earnings information is very important for the company’s future. Sometimes management does everything to maintain the company’s profit trends, even by manipulating financial information. Some methods use by management can be divided into earning management and fraud. One of the common method uses is income smoothing. Income smoothing is a management action in reducing fluctuations in corporate profits. The purpose of this research is to examine factors influencing income smoothing. Populations in this research are companies in the sector of: property, real estate and building construction listed in Indonesia Stock Exchange period 2014-2018. The sampling method used was purposive sampling. Selected samples were 33 companies for 5 years, in total, there are 165 research data. The income smoothing variable is measured by eckel index. The result shows that all independent variables: audit firm size, firm size, audit committee, leverage and managerial ownership do not influence income smoothing.
Keywords: Internal, Control, Leadership, Compensation, System, Fraud, Prevention.
Scope of the Article: Robotics and Control.