The Effect of Labor Producticity Gap and Financial Factors on Earnings Management
Keywords:
Real activities manipulation, Labor producticity gap, ROA, Firm size, Age, LeverageAbstract
This study aims to determine the effect of labor producticity gap and financial factors on earnings management in non-cyclical consumer sector companies listed on IDX / BEI for the 2019-2022 period. The theory used in this research is agency theory. The sample of this study consisted of 64 companies with a total of 256 observation data. The analysis method used in this research is panel data regression analysis. The results showed that firm size has a positive effect on earnings management. Firm age has a positive effect on earnings management. Leverage has a positive effect on earnings management. ROA has a negative effect on earnings management. Labor producticity gap has no significant effect on earnings management. This research is limited only to consumer non-cyclicals companies so that the results cannot be generalized to other sectors.