Open AccessDampak Profitabilitas sebagai Intervening pada Kepemilikan Institusional terhadap Kualitas Laba
Author(s) -
Supami Wahyu Setiyowati,
Mochamad Fariz Irianto
Publication year - 2020
Publication title -
organum
Language(s) - English
Resource type - Journals
eISSN - 2620-8164
pISSN - 2620-8156
DOI - 10.35138/organum.v3i2.85
Subject(s) - earnings quality , profitability index , business , intervening variable , earnings , issuer , population , accounting , finance , accrual , demography , sociology
Earnings quality refers to reported earnings to predict a firm’s future earnings, which is essential for the investor’s decision-making to understand its financial health. The purpose of this study was to determine the impact of profitability as an intervening variable between institutional ownership to earnings quality. This study's population was manufacturing companies in the consumer goods industry listed on the IDX for the 2017-2019 period. The sampling method is based on criteria. The samples in this study were 15 issuers. Data analysis techniques using Smart Pls. The results showed that institutional ownership affected earnings quality. Profitability was not proven as an intervening variable on the relationship between institutional ownership and earnings quality. This finding implied that institutions that had share ownership in the company increased their supervision to reduce the manager's opportunistic behaviour.