THE INFLUENCE OF DEBT TO ASSET RATIO, DEBT EQUITY RATIO, ANDFIRM SIZE ON EARNINGS MANAGEMENT

Abstract

The effect of DAR, DER, and firm size on the earnings management of food and beverage producers listed on the IDX is investigated in this study. For the years 2018–2021, the study's population consists of food and drink producers that are listed on the IDX. Purposive sampling was used to collect the samples. Secondary data was sourced from company financial filings that were documented on the website of the Indonesia Stock Exchange (IDX). The study used SPSS for a variety of statistical tasks, including classical assumption testing, descriptive analysis, and multiple linear regression. Size of the firm is the only factor that affects earnings management; DAR and DER are irrelevant. According to the study, earnings management is influenced by DAR, DER, and the size of the firm. Due to the fact that highly leveraged organizations aren't always good at managing their profits, creditors and investors should think about the company's leverage when making loans and investments.