Does Earnings Management Moderate the Effects of Profitability, Capital  Structure, and Accounting Conservatism on Firm Value?

Diamond Limbong; Astriwati; Marsuddin Musa; Yuni Maimuna

doi:10.24843/

Authors

Diamond Limbong Faculty of Economics and Business, Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari, Indonesia
Astriwati Faculty of Economics and Business, Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari, Indonesia
Marsuddin Musa Faculty of Economics and Business, Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari, Indonesia
Yuni Maimuna Faculty of Economics and Business, Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari, Indonesia

DOI:

https://doi.org/10.24843/

Keywords:

Profitability, Capital Structure, Accounting Conservatism, Earnings Management, Firm Value

Abstract

This research aims to analyze the influence of profitability, capital
structure, and accounting conservatism on firm value, with earnings
management as a moderating variable. The data for this research is
quantitative and obtained through the annual reports of the 20 largest
banks in ASEAN from 2019 to 2022. The data analysis method used in
this research is panel data regression analysis with Common Effect
Model (CEM) and Moderated Regression Analysis (MRA) with
earnings management as moderate variable. The results of this research
indicate that profitability and capital structure have a significant
negative impact on the firm value. Meanwhile, accounting
conservatism does not have a significant impact on firm value. The
moderation test shows that the earnings management variable is able to
strengthen the influence of profitability, capital structure, and
accounting conservatism variables on firm value. Thus, earnings
management is considered appropriate as a moderating variable in this
research.