PENGARUH FINANCIAL DISTRESS DAN LEVERAGE TERHADAP MANAJEMEN LABA (Studi Kasus Pada Perusahaan Sub sektor Farmasi Periode 2017-2021)

Abstract

This study intends to investigate how financial distress and leverage affect managing profitability. The population
of this study includes all pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange for the
2017-2021 period, the sample was determined by purposive sampling, namely 8 companies. The data collection
technique uses documentation techniques, namely collecting financial reports for the pharmaceutical sub-sector
in the 2017-2021 period. This research method uses quantitative methods with descriptive and verification data
analysis techniques and hypothesis testing using multiple linear regression analysis models. The results show that
the coefficient of determination (R Square) indicates that financial distress and leverage impact earnings
management by 20.2%, whereas other factors not included in this study influence the remaining factors. Partial
hypothesis testing shows that financial distress has no effect on earnings management while leverage has a
significant effect on earnings management. Simultaneously financial distress and leverage have a significant effect
on earnings management in pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange for the
2017-2021 period.