THE EFFECT OF INFORMATION ASYMETRICITY AND COMPANY SIZE ON PROFIT MANAGEMENT PRACTICES IN MANUFACTURING COMPANIES LISTED ON STOCK EXCHANGES INDONESIA

Abstract

This study was conducted with the aim of testing and analyzing the effect of information asymmetry and firm size on earnings management practices in manufacturing companies listed on the Indonesia Stock Exchange. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange, while the sample that met the criteria for sampling was observed for three years and as many as seventeen manufacturing companies listed on the Indonesia Stock Exchange. This research approach uses associative research. Data collection techniques in this study using documentation techniques. and the analysis technique used is multiple linear regression analysis, hypothesis testing and coefficient of determination. The results show that the independent variables in this study have no simultaneous effect on earnings management and partial testing proves that information asymmetry and firm size variables have no and no significant effect on earnings management practices in manufacturing companies listed on the Indonesia Stock Exchange.