Abstract :
Many companies that have performed well can be seen from their financial reports.
This financial report prepared by management contains information regarding the
company's income statement which becomes a reference for investors and creditors to
assess the company in the future. However, many company management in preparing
financial reports make large profits as a target to produce information for users of
financial statements. Therefore, profitability analysis, accounting conservatism and
company size need to be done with the intention of knowing whether the company in
this case is taking earnings management actions.
This type of research is an empirical study on the analysis of the effect of
profitability, accounting conservatism and company size on earnings management.
The type of data used is secondary data and the analysis technique uses multiple
linear regression techniques that involve more than one independent variable and one
dependent variable.
Based on the research conducted, it can be concluded that profitability has a
negative effect on earnings management because the resulting low profit will be
detrimental to shareholders so that management requires earnings management
action, there is an effect of accounting conservatism on earnings management
because conservative companies have less opportunity to manipulate earnings. It can
be seen from companies that have a market value that is higher than their book value.
And company size has no effect on earnings management.
Keywords: Profitability, Accounting Conservatism, Earnings Management, Company
Size.