THE EFFECT OF COMPANY SIZE AND AUDITOR SWITCHING ON PROFIT MANAGEMENT IN THE MANUFACTURING SECTOR
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Purpose: This study aimed to elucidate the effect of firm size and auditor turnover on manufacturing earnings management.
Research Methodology: The data were analyzed using a multiple regression model. The sample was drawn using a purposive sampling technique from financial statements and independent auditor reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2015 and 2019 and processed using the SPSS application.
Results: The test results indicate that while firm size has an effect on earnings management, auditor turnover has no effect.
Limitations: Due to the fact that the samples used in this study were drawn exclusively from annual reports of manufacturing companies, the research findings cannot be generalized to all industries. The study's short observation period is also a limitation; it is possible that different results would be displayed with a longer observation period.
Results: The findings of this study are expected to contribute to the development of accounting studies on earnings management practices and the factors affecting them.
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