The Influence of Profitability, Leverage, and Company Size on Financial Restatements in the Financial Sector

Abstract

This research was conducted to obtain empirical evidence about the influence of profitability, leverage, and company size on financial restatements in the financial sector. Based on the results and discussion of the research, this research can be concluded as follows: a. Profitability, leverage, and company size together can explain the possibility of a financial statement restatement. The influence of each variable is described as follows:b. There is not enough evidence that the greater the profitability, the more likely the company is to restate its financial statements. c. There is not enough evidence that the higher the leverage a company has, the more likely the company is to restate its financial statements d. There is not enough evidence that the larger the company size, the more likely the company is to restate its financial statements