Open AccessPengaruh Kesulitan Keuangan Terhadap Manajemen Laba dengan Internal Audit sebagai Variabel Pemoderasi
Author(s) -
Devi Silviana,
Elfina Astrella Sambuaga
Publication year - 2022
Publication title -
journal of management and business review/journal of management and business review
Language(s) - English
Resource type - Journals
eISSN - 2503-0736
pISSN - 1829-8176
DOI - 10.34149/jmbr.v19i1.311
Subject(s) - earnings management , accrual , business , moderation , stock exchange , accounting , audit , empirical evidence , financial distress , working capital , earnings , finance , financial system , psychology , social psychology , philosophy , epistemology
This study aims to provide empirical evidence regarding the effect of financial distress towards earnings management and the role internal audit as a moderating variable. This study uses all non-financial companies listed in Indonesia Stock Exchange during 2013-2019, totalled 1,442 observations. The results show that Distress1 proxied by z-score can reduce accrual and real earnings management practices, while D_Distress2 proxied by net working capital can increase accrual earnings management but reduce real earnings management practices. In addition, internal audit does not have a moderating role in weakening the effect of financial distress on earnings management but can reduce accrual and real earnings management practices.