Firm Size, Financial Distress, Audit Quality, and Earnings Management of Banking Companies
- DOI
- 10.2991/assehr.k.200529.086How to use a DOI?
- Keywords
- firm size, financial distress, audit quality, earnings management, banking companies
- Abstract
The era of globalization has stimulated the spirit of competition of companies in an ever-intensifying business race of various sectors. In an attempt to sustain the life of the company, earnings figures are kept positive to attract investors and to elevate the company’s social status. This study aims to examine whether firm size, financial distress, and audit quality are influenced by earnings management. This research is a quantitative study from secondary data. A sample of 12 banking companies listed on the Indonesia Stock Exchange in 2014–2018 was used in this research. This research also employed descriptive analysis and panel data regression analysis. Results showed that firm size had a significant negative effect on earnings management; financial distress had a significant positive effect on earnings management; whereas audit quality had no significant effect on earnings management. A multitude of issues arising in banking companies involve earnings management behaviour. It is suggested that investors and the public perform a deeper analysis of the companies in which to invest. Companies are also advised against earning management practices harmful to financial statement users.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Angela Kurniawati AU - Rosinta Ria Panggabean PY - 2020 DA - 2020/05/04 TI - Firm Size, Financial Distress, Audit Quality, and Earnings Management of Banking Companies BT - Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019) PB - Atlantis Press SP - 413 EP - 417 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.200529.086 DO - 10.2991/assehr.k.200529.086 ID - Kurniawati2020 ER -