Abstract:
The aim of this research is to analysis the factors affecting on earnings management in basic and chemical industry companies listed in Indonesia for the period of 2012 – 2014. The factors include accounting conservatism level, asymmetry information, debt contracts, sales growth and firm size. Discretionary accruals by Modified Jones Model is a proxy to measure the level of earnings management. The sample used in this research is 14 companies that fulfill the purposive criteria. This research apply multiple regression model to examine these factors effect on earnings management.
The result of this research indicates that accounting conservatism level, debt contracts and sales growth have partially significant effect on earnings management. But asymmetry information and firm size don’t have partially significant effect on earnings management. However, accounting conservatism level, asymmetry information, debt contracts, sales growth and firm size have simultaneously significant effect on earnings management.
