The Effect of Institutional Ownership, Independent Auditor Tenure, Audit Committee Tenure on Earnings Management in Palm Oil Plantation Companies Listed on the Indonesia Stock Exchange

Abstract

This research aims toanalyze the influence of institutional ownership on earnings management, analyze the influence of independent auditor tenure on earnings management, analyze the influence of audit committee tenure on earnings management, and describe the variables of earnings management, institutional ownership, independent auditor tenure and audit committee tenure. The data in this research is time series data in the form of Annual Report data for 5 years, from 2018-2022, so the data in this research is 60 pieces of data. The data analysis technique uses multiple regression analysis. The results of the analysis show that Institutional Ownership has a negative effect on Earnings Management. This shows that greater institutional ownership in a company can usually have more access to the company's internal information, including control processes and financial reporting. This can allow them to more quickly detect or respond to suspicious earnings management practices. Independent Auditor Tenure has no effect on Earnings Management. This shows that the tenure of an independent auditor cannot influence earnings management practices within a company. Auditors in carrying out their audits must continue to carry out them in accordance with procedures and must improve the quality of their audits so that the audited financial reports can reflect their true value. Audit Committee Tenure does not affect Profit Management. This shows that the tenure of the audit committee in carrying out supervision cannot influence the existence of earnings management in a company. In carrying out its supervision, the audit committee must be independent of management both in reporting its performance results and in selecting an independent external auditor.