Abstract
This research aims to provide empirical evidence that is related to the effect of financial distress and profitability on earnings management. Earnings management is measured by the Jones Modified Model. Financial distress is measured by the Grover Model. Profitability is proxied by profit margin, return on assets, return on equity, and earnings per share. The research sample of this study is a consumer goods industry which is listed in Indonesia Stock Exchange 2015-2017. Purposive sampling was used as a sampling method and obtained 108 samples. The analysis technique used is panel regression analysis with Stata 14. The results of this study indicate that each of financial distress, return on equity, and earnings per share has an effect on earnings management while profit margin and return on assets do not affect earnings management.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
