ABSTRACT
The objective of this research is to obtain empirical evidence about the influence of firm size, financial leverage, firm age, audit quality, ownership concentration, managerial ownership, institutional ownership, board size and board activity as independent variables on earnings management as a dependent variable in manufacturing companies listed in the Indonesia Stock Exchange. The population in this research is all listed as non-financial companies in the Indonesia Stock Exchange from 2013 to 2016. The sample was obtained through a purposive sampling method, in which 78 listed manufacturing companies in the Indonesia Stock Exchange met the sampling criteria resulting in 305 data. Multiple linear regression was used as the data analysis method. The results of this research show that firm size, firm age, audit quality, ownership concentration, managerial ownership, and board activity does not, statistically, influence earnings management, while financial leverage, institutional ownership, and board size does. Leverage has a negative influence as high leverage can reduce cash available for non-optimal spending and it can trigger the lender to induce spending restrictions.
