PENGARUH PROFITABILITAS, LEVERAGE DAN GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

Abstract

This research aimed to examine the effect of profitability, leverage, board of independent commissionaire, and audit committee on the profit management at the Pharmaceutical and Health companies listed on the Indonesia Stock Exchange (IDX) 2017-2021 the research method used is a quantitative method. The data collection technique used purposive sampling with determined criteria by the researcher. Moreover, the data analysis technique used multiple linear regression. In line with that, there were 9 samples from 22 populations of Pharmaceutical and Health companies listed on the Indonesia Stock Exchange (IDX) during 2017-2021. In addition, the data were secondary in the form of annual financial statements. The result showed that both profitability and audit committee did not affect profit management. However, the board of independent commissionaires had a positive effect on profit management. This happened as the size of the board of independent commissionaire was not the main determined factor from the effectiveness of the supervisor on the company’s management. In contrast, leverage had a negative effect on profit management because it was used as a signal to indicate the company’s capability to pay off debts both long and short-term.