Citation:

Maghfira Arsyfa Ganivy, Erna Setiany. "The Influence of Board Diversity, Profitability and Leverage on Profit Management" International Research Journal of Economics and Management Studies, Vol. 3, No. 5, pp. 195-201, 2024.

Abstract:

The purpose of this study is to ascertain how debt, profitability, and board diversity affect earnings management. Non-cyclical consumer enterprises listed on the Indonesia Stock Exchange between 2016 and 2020 made up the study's population. Purposive sampling was used in the study's group identification process, yielding 200 data points overall from a sample of 40 organizations. Data analysis was performed by panel data regression using EViews 12. Board diversity was measured by gender, age, educational background and tenure of board members. Meanwhile, profitability is proxied by ROA, Leverage is proxied by DAR, and earnings management is proxied by the discretionary accrual model modified by Jones. The results showed that board diversity had no effect on earnings management. Profitability and leverage had a positive effect on earnings management.

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Keywords:

Earnings Management, Gender, Age, Educational Background, Tenure, Roa, Leverage.