The effect of capital structure and company size on profit management with profitability as a moderating variable
Agency problems arise because there is a gap in interests between shareholders or principals as shareholders and agents who are authorized parties or managers to run the company's business. The root of agency problems lies in the division of roles between shareholders, who own capital, and mana...
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| Format: | Article |
| Language: | English |
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Indonesian Institute for Counseling, Education and Therapy (IICET)
2024-09-01
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| Series: | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
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| Online Access: | https://jurnal.iicet.org/index.php/jppi/article/view/2983 |
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| _version_ | 1832584620856573952 |
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| author | Dewi Kurniawati Agus Munandar |
| author_facet | Dewi Kurniawati Agus Munandar |
| author_sort | Dewi Kurniawati |
| collection | DOAJ |
| description | Agency problems arise because there is a gap in interests between shareholders or principals as shareholders and agents who are authorized parties or managers to run the company's business. The root of agency problems lies in the division of roles between shareholders, who own capital, and management, who run the company. This research aims to provide empirical evidence regarding the influence of capital structure and company size on earnings management, with profitability as a moderator. The population of this research includes 63 mining sector companies listed on the Indonesia Stock Exchange for the 2018–2021 period. A sample of 17 companies was selected based on the sampling criteria for the intended sampling method. The results of this research indicate that fluctuating capital structures and company size influence revenue management variables. Using the Moderated Regression Analysis (MRA) test shows that profitability can moderate the impact of capital structure on earnings management and can moderate the impact of company size on earnings management. To maintain a good image, management will adopt policies that will affect reporting in the financial statements. |
| format | Article |
| id | doaj-art-d0e6112966e6466c8983f8270a39f365 |
| institution | Kabale University |
| issn | 2477-8524 2502-8103 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Indonesian Institute for Counseling, Education and Therapy (IICET) |
| record_format | Article |
| series | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
| spelling | doaj-art-d0e6112966e6466c8983f8270a39f3652025-01-27T12:38:04ZengIndonesian Institute for Counseling, Education and Therapy (IICET)JPPI (Jurnal Penelitian Pendidikan Indonesia)2477-85242502-81032024-09-0110369970610.29210/0202429832206The effect of capital structure and company size on profit management with profitability as a moderating variableDewi Kurniawati0Agus Munandar1Universitas Esa UnggulUniversitas Esa UnggulAgency problems arise because there is a gap in interests between shareholders or principals as shareholders and agents who are authorized parties or managers to run the company's business. The root of agency problems lies in the division of roles between shareholders, who own capital, and management, who run the company. This research aims to provide empirical evidence regarding the influence of capital structure and company size on earnings management, with profitability as a moderator. The population of this research includes 63 mining sector companies listed on the Indonesia Stock Exchange for the 2018–2021 period. A sample of 17 companies was selected based on the sampling criteria for the intended sampling method. The results of this research indicate that fluctuating capital structures and company size influence revenue management variables. Using the Moderated Regression Analysis (MRA) test shows that profitability can moderate the impact of capital structure on earnings management and can moderate the impact of company size on earnings management. To maintain a good image, management will adopt policies that will affect reporting in the financial statements.https://jurnal.iicet.org/index.php/jppi/article/view/2983capital structure, firm size, earnings management, profitability |
| spellingShingle | Dewi Kurniawati Agus Munandar The effect of capital structure and company size on profit management with profitability as a moderating variable JPPI (Jurnal Penelitian Pendidikan Indonesia) capital structure, firm size, earnings management, profitability |
| title | The effect of capital structure and company size on profit management with profitability as a moderating variable |
| title_full | The effect of capital structure and company size on profit management with profitability as a moderating variable |
| title_fullStr | The effect of capital structure and company size on profit management with profitability as a moderating variable |
| title_full_unstemmed | The effect of capital structure and company size on profit management with profitability as a moderating variable |
| title_short | The effect of capital structure and company size on profit management with profitability as a moderating variable |
| title_sort | effect of capital structure and company size on profit management with profitability as a moderating variable |
| topic | capital structure, firm size, earnings management, profitability |
| url | https://jurnal.iicet.org/index.php/jppi/article/view/2983 |
| work_keys_str_mv | AT dewikurniawati theeffectofcapitalstructureandcompanysizeonprofitmanagementwithprofitabilityasamoderatingvariable AT agusmunandar theeffectofcapitalstructureandcompanysizeonprofitmanagementwithprofitabilityasamoderatingvariable AT dewikurniawati effectofcapitalstructureandcompanysizeonprofitmanagementwithprofitabilityasamoderatingvariable AT agusmunandar effectofcapitalstructureandcompanysizeonprofitmanagementwithprofitabilityasamoderatingvariable |