Abstract
The objective of this research is to obtain empirical evidence about the effect of profitability, audit quality, auditor independency, firm size, and leverage either individually or simultaneously toward earnings management. Dependent variable of this research was earnings management measured by discretionary accruals with modified jones model. Earnings management is an action taken by management to determine current reported earnings based on judgment that may reduce the credibility of the financial statements, so the information presented can mislead decision-makers. Independent variables were profitability, audit quality, auditor independency, firm size, and leverage.
 The object in this research was manufacturing companies listed in Indonesia Stock Exchange (IDX) for period 2013 until 2015. The samples in this research were 103 companies listed on IDX in 2013 – 2015 were selected by using purposive sampling method. Secondary data used in this research was analyzed by using multiple regression method.
 The results of this research were: (1) Profitability had significant effects on earnings management, (2) Audit quality had no significant effects on earnings management, (3) Auditor independency had no significant effects on earnings management, (4) Firm size had no significant effects on earnings management, and (5) Leverage had no significant effects on earnings management.
Highlights
Pertumbuhan ekonomi Indonesia tercermin dari pesatnya pertumbuhan perusahaan yang dapat dilihat dari peningkatan harga saham perusahaan, serta peningkatan jumlah perusahaan yang terdaftar di
earnings management measured by discretionary accruals with modified jones model
an action taken by management to determine current reported earnings based on judgment
Summary
Pertumbuhan ekonomi Indonesia tercermin dari pesatnya pertumbuhan perusahaan yang dapat dilihat dari peningkatan harga saham perusahaan, serta peningkatan jumlah perusahaan yang terdaftar di. Manajemen laba menurut Scott (2012) adalah suatu tindakan manajemen untuk memilih kebijakan akuntansi dari suatu standar tertentu dengan tujuan memaksimalkan kesejahteraan pihak manajemen dan/atau nilai pasar perusahaan. Faktor kedua yang diperkirakan akan akan lebih mencerminkan laba yang mempengaruhi manajemen laba ingin dicapai perusahaan pada adalah kualitas audit yang periode berjalan Profitabilitas merupakan dan memiliki pemahaman mendalam kemampuan perusahaan dalam terhadap suatu industri (spesialisasi), sehingga diasumsikan auditor lebih cakap dalam melakukan audit dan menemukan penyimpangan yang terdapat di laporan keuangan klien. Hal ini akan mendorong perusahaan untuk menyajikan laporan keuangannya secara lebih transparan, terstruktur, lengkap, dan akurat, sehingga kecil kemungkinan terjadinya manajemen laba. Hal ini laba agar laporan yang dihasilkan menyebabkan pihak eksternal memberikan sinyal bahwa memperoleh informasi yang tidak perusahaan mampu melunasi lengkap atau bahkan tidak relevan utangnya
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