Abstract

This research aims to analyze and obtain empirical evidence regarding the influence of managerial ownership, company size, and profitability on earnings management. The population in this study consists of manufacturing companies in the food and beverage sector listed on the Indonesia Stock Exchange (BEI) from 2019 to 2021. Sampling was conducted using purposive sampling method, and the sample size was 25 companies. The results of the study indicate that managerial ownership has a negative impact on earnings management. This implies that the higher the managerial ownership, the lower the earnings management in the company. In other words, as managerial ownership increases, there is a decrease in earnings management activities, indicating a larger stake of managerial ownership. Furthermore, profitability has a positive impact on earnings management. This means that the extent of earnings management in the company increases in proportion to the level of profitability achieved by the company. On the other hand, company size does not affect earnings management. Business with large or small assets has diverse size requirements, making it an inappropriate determinant in earnings management. Additionally, stringent oversight from the government, analysts, and investors involved in corporate administration discourages managers from engaging in earnings management activities.

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