Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)

Firm Size, Financial Distress, Audit Quality, and Earnings Management of Banking Companies

Authors
Angela Kurniawati, Rosinta Ria Panggabean
Corresponding Author
Angela Kurniawati
Available Online 4 May 2020.
DOI
https://doi.org/10.2991/assehr.k.200529.086How to use a DOI?
Keywords
firm size, financial distress, audit quality, earnings management, banking companies
Abstract

The era of globalization has stimulated the spirit of competition of companies in an ever-intensifying business race of various sectors. In an attempt to sustain the life of the company, earnings figures are kept positive to attract investors and to elevate the company’s social status. This study aims to examine whether firm size, financial distress, and audit quality are influenced by earnings management. This research is a quantitative study from secondary data. A sample of 12 banking companies listed on the Indonesia Stock Exchange in 2014–2018 was used in this research. This research also employed descriptive analysis and panel data regression analysis. Results showed that firm size had a significant negative effect on earnings management; financial distress had a significant positive effect on earnings management; whereas audit quality had no significant effect on earnings management. A multitude of issues arising in banking companies involve earnings management behaviour. It is suggested that investors and the public perform a deeper analysis of the companies in which to invest. Companies are also advised against earning management practices harmful to financial statement users.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
4 May 2020
ISBN
978-94-6252-961-8
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.200529.086How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Angela Kurniawati
AU  - Rosinta Ria Panggabean
PY  - 2020
DA  - 2020/05/04
TI  - Firm Size, Financial Distress, Audit Quality, and Earnings Management of Banking Companies
BT  - Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
PB  - Atlantis Press
SP  - 413
EP  - 417
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200529.086
DO  - https://doi.org/10.2991/assehr.k.200529.086
ID  - Kurniawati2020
ER  -