The Impact of Institutional Ownership, Financial Performance, and Sustainability Reports on Profit Management: Moderating Effects of Variable Measures

Abstract

This study aims to analyze the effect of institutional ownership, financial performance, and sustainability reports on earnings management with firm size as a moderating variable. This study uses manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2022 period by collecting data using purposive sampling. There were 102 observational data in this study. Data analysis was carried out using multiple linear regression analysis of the MRA (Moderated Regression Analysis) model. Observation data in this study were processed with the help of the SPSS 25 program. The results showed that institutional ownership has a positive effect on earnings management, financial performance, sustainability reports have no effect on earnings management, and company size as a moderating variable does not moderate between institutional ownership, financial performance, and sustainability reports on earnings management