FINDING AND RECOGNIZING THE DETERMINANTS OF PROFIT MANAGEMENT

Abstract

This study looked at how institutional ownership and leverage affected earnings management strategies in manufacturing companies listed on the Indonesia Stock Exchange between 2022 and 2025. Leverage and institutional ownership were the independent factors, and earnings management was the dependent variable. All publicly traded manufacturing companies listed on the Indonesia Stock Exchange comprised the study population. Purposive sampling was used to select participants, and 48 businesses that met the study's requirements were identified. Secondary data from business financial statements was used in the study. Multiple linear regression was used in SPSS to analyze the data. The results show that while leverage does not affect earnings management, institutional ownership does. Additionally, the coefficient of determination indicates that the independent variables explain 18% of the variation in earnings management. It is advised that future research include additional factors to provide a more comprehensive explanation of earnings management behavior.

Keywords: Leverage, Institutional Ownership, Earnings Management, Manufacturing