Information Asymmetry, Audit Quality, and Institutional Ownership On Earnings Management: Evidence From Mining Companies Listed on the Indonesia Stock Exchange
Metta Kusumaningtyas1, Anis Chariri2, Etna Nur Afri Yuyetta3
1Metta Kusumaningtyas, Department of Business, Bank BPD Jateng STIE Bank BPD Jateng, Jl. Pemuda No. A, Semarang, Central Java, Indonesia.
2Anis Chariri, Department of Accounting Business and Economics, University of Diponegoro, Jl. Prof. Sudharto, Kampus Undip Tembalang, Semarang, Central Java, Indonesia.
3Etna Nur Afri Yuyetta, Department of Accounting Business and Economics, University of Diponegoro, Jl. Prof. Sudharto, Kampus Undip Tembalang, Semarang, Central Java, Indonesia.
Manuscript received on 01 September 2019 | Revised Manuscript received on 10 September 2019 | Manuscript Published on 23 September 2019 | PP: 126-139 | Volume-8 Issue-5C, May 2019 | Retrieval Number: E10180585C19/19©BEIESP | DOI: 10.35940/ijeat.E1018.0585C19
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The intent of this research is to scrutinize the consequence of information asymmetry and audit quality on earnings management using institutional ownership as a moderating variable. The sample of this study consists of 28 mining companies listed on the Indonesia Stock Exchange (IDX) for 5 years of observation in 2012-2016, with total sample used were 140 data. Moderated Regression Analysis is used to test the hypothesis with the results that audit quality has a significant and negative influence on earnings management. While institutional ownership is accepted as a moderating variable that weakens the influence of information asymmetry on earnings management. In contrast, information asymmetry does not affect earnings management and institutional ownership does not strengthen the influence of audit quality on earnings management.
Keywords: Earnings Management, Information Asymmetry, Audit Quality, Institutional Ownership, Mining Companies, Indonesia.
Scope of the Article: Information Ecology and Knowledge Management