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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

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ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 05 August 2022

Factors Affecting Earning Management in Companies on the Indonesia Stock Exchange: Study of Fraud and Corruption Practices

Aminullah Assagaf, Nur Sayidah, Ulul Albab, Hadi Sugiyanto, Alvi Mulyaningtyas

University of Dr. Soetomo Surabaya, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.05.03.439

Pages: 90-101

Keywords: Fraud and Corruption, Earning management, Accounting Management

Abstract

This study examines the phenomenon of corruption fraud proxied by earning management in companies listed on the Indonesia Stock Exchange. This study uses the variables of leverage, capital expenditure, and profitability as key variables influencing earning management practices that lead to fraud and corruption. This study uses time-series data from 2017 to 2021 and selects a sample by purposive sampling of as many as 28 companies listed on the Indonesia Stock Exchange. The study's results found that the key variables of leverage, capital expenditure, and profitability turned out to have a positive and significant effect on corruption fraud proxied by earning management. This research contributes mainly to the management of shareholders, practitioners, and investors to predict the possibility of earning management practices that lead to corruption and fraud committed by the company. The originality of this research is mainly in measuring corruption and fraud projected by earning management, thus providing a reference for future research.

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