The Effect of Director's Remuneration, Audit Fee, and Director's Expertise on Earnings Management with Sales Growth as Moderating Variable

Abstract

This study examines the factors influencing earnings management practices in state-owned companies and their subsidiaries on the Indonesia Stock Exchange. The samples used in this study were nine state-owned companies and subsidiaries listed on the IDX for 2013-2019, totaling 63 samples. The analytical tool used to analyze the hypothesis is Eviews 11.0. The results showed that the director's expertise significantly positively affects earnings management. However, the director's remuneration and audit fee do not affect earnings management. Sales growth did not moderate the relationship between director remuneration, audit fees, and the director's expertise in earnings management. This research has important implications for building informal control over an action that the directors will take through the perspective of religiosity in influencing the behavior and decisions that the directors will take.

Keywords

• director remuneration
• audit fee
• director expertise
• sales growth
• earnings managemen