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ines devina Sandy Harianto Johan Yanto

Abstract

The research objective is to analyze the influence of capital structure on earnings management practices. The research using multiple regressions examined 192 non-financial companies listed on Indonesia Stock Exchange from 2005 to 2014 period.  The proxies of capital structure are debt-to-equity ratio and debt-to-asset ratio, while earnings management calculated through discretionary accruals from Jones, Modified Jones, cross-sectional industrial models. The results showed that there is a negative significant influence from firm’s capital structure to earnings management (α <0.05). This indicates that higher use of debt would increase the difficulties of debt covenant performance requirements; hence it increases the degree of control over the company, leaving less opportunity for earnings management.

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How to Cite
DEVINA, ines; HARIANTO, Sandy; YANTO, Johan. Analisis Pengaruh Struktur Modal Terhadap Praktik Manajemen Laba. Studi Akuntansi dan Keuangan Indonesia, [S.l.], v. 2, n. 1, p. 124-148, july 2019. ISSN 2654-6221. Available at: <https://journal.prasetiyamulya.ac.id/journal/index.php/saki/article/view/269>. Date accessed: 18 sep. 2021. doi: https://doi.org/10.21632/saki.2.1.124-148.
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Articles