Suharti Suharti, Vanesa Vanesa, Harry Patuan Panjaitan, Yusrizal Yusrizal, Yusnita Octafilia Th. A. Y. I, Yuni Friska, Roni Putra Adi

THE EFFECTS OF ACCOUNTING CONSERVATISM, EARNINGS PERSISTENCE, INCOME SMOOTHING, INSTITUTIONAL OWNERSHIP, AND COMPANY SIZE ON EARNINGS QUALITY

Introduction

The effects of accounting conservatism, earnings persistence, income smoothing, institutional ownership, and company size on earnings quality. Analisis pengaruh konservatisme akuntansi, persistensi laba, perataan laba, kepemilikan institusional, dan ukuran perusahaan terhadap kualitas laba di BEI.

Abstract

Penelitian ini bertujuan untuk mengetahui pengaruh Konservatisme Akuntansi, Persistensi Laba, Perataan Laba, Kepemilikan Institusional, dan Ukuran Perusahaan terhadap Kualitas Laba pada perusahaan transportasi dan logistik yang terdaftar di Bursa Efek Indonesia selama periode 2019-2023. Penelitian ini menggunakan data sekunder, dan teknik pengambilan sampel yang digunakan adalah Purposive Sampling, menghasilkan ukuran sampel sebanyak 22 perusahaan. Metode analisis penelitian meliputi analisis deskriptif dan berbagai jenis evaluasi menggunakan perangkat lunak SmartPLS. Hasil penelitian menunjukkan bahwa Konservatisme Akuntansi berpengaruh negatif signifikan terhadap Kualitas Laba, Persistensi Laba tidak berpengaruh terhadap Kualitas Laba, Perataan Laba berpengaruh negatif signifikan terhadap Kualitas Laba, Kepemilikan Institusional tidak berpengaruh terhadap Kualitas Laba, dan Ukuran Perusahaan tidak berpengaruh terhadap Kualitas Laba. This Research Purposed to determine the effect of Accounting Conservatism, Earning Persistence, Income Smoothing, Institutional Ownership, and Company Size on Earning Quality in transportation and logistics companies listed on the Indonesia Stock Exchange during the period 2019-2023. This study utilizes secondary data, and the sampling technique employed is Purposive Sampling, resulting in a sample size of 22 companies. The research analysis method includes descriptive analysis and various types of evaluations using the SmartPLS software. The results indicate that Accounting Conservatism has a negative significant effect on Earning Quality, Earning Persistence has no effect on Earning Quality, Income Smoothing has a negative significant effect on Earning Quality, Institutional Ownership has no effect on Earning Quality, and Company Size has no effect on Earning Quality.  

Review

This study provides a timely investigation into the crucial determinants of earnings quality within the Indonesian transportation and logistics sector. The research systematically examines the influence of five key factors—Accounting Conservatism, Earnings Persistence, Income Smoothing, Institutional Ownership, and Company Size—on Earnings Quality for companies listed on the Indonesia Stock Exchange over the 2019-2023 period. Addressing such a pertinent topic, especially within a specific industry and emerging market context, contributes valuable insights to both academic literature and practical financial reporting considerations. The methodology employed secondary data, utilizing a purposive sampling technique to select 22 companies. Data analysis was conducted using descriptive statistics and SmartPLS software. The findings present a mixed yet compelling picture: both accounting conservatism and income smoothing were found to have a significant negative effect on earnings quality, indicating that these practices, in this context, tend to diminish the credibility or reliability of reported earnings. Interestingly, earnings persistence, institutional ownership, and company size did not demonstrate a significant impact on earnings quality, which may challenge some conventional expectations and warrants further theoretical or contextual discussion. While the study offers valuable initial insights, its overall contribution could be strengthened by addressing certain limitations. The sample size of 22 companies, though derived from purposive sampling, is relatively small and might impact the generalizability and statistical power of the findings. Future research would benefit from expanding the sample to a larger population of companies or across different sectors to enhance the robustness and broader applicability of the results. Additionally, a more in-depth discussion of the theoretical frameworks supporting the unexpected non-significant findings could provide richer analytical depth. Despite these points, the paper serves as a useful foundational analysis for understanding the intricate factors affecting earnings quality in the Indonesian market.

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