EFFECT OF DEBT LEVEL AND ACCOUNTING CONSERVATISM ON PROFIT MANAGEMENT

Herdi Kurniawan, Rissam Nawawi, Wahyu Nurul Hidayati

Abstract


This study aims to test and provide empirical evidence regarding the effect of debt levels and accounting conservatism on earnings management in real estate, construction and building companies listed on the Indonesia Stock Exchange for the 2016-2020 period. The type of research used is quantitative research. The number of samples used in this study was 55 data from 11 companies during the 2016-2020 period which was obtained using the purposive sampling method based on predetermined criteria. The data used is secondary data in the form of audited annual financial statements for the 2016-2020 period obtained from the official website of the Indonesia Stock Exchange and the websites of each company. The data analysis technique used is descriptive statistics and panel data regression analysis using Eviews 10 software. The results of this study are based on a partial test with t test stating that the level of debt does not affect earnings management, while accounting conservatism affects earnings management. Based on the simultaneous test with the F test states that simultaneously the level of debt and accounting conservatism on earnings management.

 

Keywords: Debt Level; Accounting Conservatism; Earnings Management


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