THE INFLUENCE OF LEVERAGE, COMPANY GROWTH, COMPANY SIZE ON PROFIT MANAGEMENT

Abstract

This study aims to analyze Leverage, Company Growth and Company Size on Earnings Management. This study uses secondary data, namely the Financial Statements listed on the Indonesia Stock Exchange (BEI) 2018-2022. The sample was selected based on the criteria set by the researcher using the purposive sampling method and obtained a sample size of 145 data from 29 companies that met the criteria. This study uses the panel data regression analysis method. The results of this study prove that Leverage has no effect on Earnings Management, Company Growth affects Earnings Management, and Company Size affects Earnings Management. The results show that it is possible for management to carry out earnings management to get stakeholders' attention to the company, supporting factors make management carry out earnings management in meeting stakeholders' expectations of the company. This supports Agency Theory, namely the conflict of interest between Principal and Agent in fulfilling and prospering the interests of each party. Recommendations for further researchers based on the research results are to add other variables to see Earnings Management and increase the sample