PENGARUH NARSISME CEO TERHADAP NILAI PERUSAHAAN DENGAN MANAJEMEN LABA SEBAGAI VARIABEL MEDIASI

Abstract

This research aims to examine and find out the effect of CEO narcissism on the firm value with earnings management as the mediated variable at manufacturing companies listed on the Indonesia Stock Exchange (IDX) in the property and real estate sector. Furthermore, the measurement used CEO narcissism which was a CEO picture. Meanwhile, the firm value was measured by Price to Book Value (PBV) and profit management was measured by Modified Jones Model. This research used a quantitative method with purposive sampling technique, a sample selection with determining criteria. The research sample was 111 in 37 companies of the property and real estate sector within the 2018-2020 observation period, Moreover, this research used multiple linear regressions analysis.The research result showed that: (1) CEO narcissism had a positive and significant effect on the earnings management, because the higher the narcissism level of a CEO, it was able to conduct the company’s earnings management. 2). CEO narcissism did not affect the firm value, because a good company’s level was able to give trust to the investors. 3) Earnings management had a significant negative effect on firm value. 4) Earnings management was able to mediate the CEO's narcissism on the firm value.
Keywords: narcissism, firm value, earnings management