| dc.description.abstract | Earnings management is the company’s potential or management behavior to gain profits by managing earnings
according to their wishes. This study examines the effect of the board of commissioners size, independent
commissioners, audit committee, leverage, and financial performance on earnings management practices in banking
companies listed on the Indonesia Stock Exchange. The data used are company data for 80 firm-years, 2015-2018,
with specific criteria. Five research hypotheses were analyzed using linear regression. The data shows that banking
companies listed on the Indonesia Stock Exchange in the research year on average have met the Central Bank of
Indonesia requirements. The test results show that financial performance variables affect earnings management.
Managers tend to do earnings management by increasing their income if the value of financial performance is small or
decreases. Unexpectedly, the board size, the proportion of independent boards, audit committees, and leverage do not
influence earnings management. The company financially performs earnings management to increase earnings to meet
the prescribed regulations and attract investors. Regulators should establish robust monitoring mechanisms to reduce
the possibility of earnings management | en_US |
