The Effect of Earnings Management, Board Characteristics, and Firm Size to Firm Performance on Manufacturing Companies

Sari Dewi, Vieri Wijaya


Abstract. This study aims to examine the effect of earnings management, board characteristics, and firm size on firm performance by measuring Tobin's Q (TQ). In this study, we examine the effect of earnings management using accrual-based earnings management and real earnings management, the effect of board characteristics using the variable the board of directors size and board of commissioners size, and also examine the effect of firm size by means of the natural log of firm assets. The results of this study indicate that accrual-based earnings management and firm size have a significant positive impact on firm performance while for real earnings management variables, the board of directors size, and the board of commissioners size are not significant on firm performance in this research topic.

Full Text:



Adryanti, A. F. (2019). Pengaruh pilihan metode manajemen laba akrual dan riil terhadap kinerja keuangan perusahaan sektor manufaktur. Jurnal Studi Akuntansi dan Keuangan 2(1): 47–62.

Afriani, U., Cynthia., & Sidharta, U. (2019). Board of commissioners in corporate governance, firm performance, and ownership structure. International Research Journal of Business Studies 12(2): 111–36.

Al-Slehat, Z. A. F. (2019). Impact of financial leverage, size and assets structure on firm value: evidence from industrial sector, jordan. International Business Research 13(1): 109.

Apriliani, M. T., & Totok, D. (2018). Pengaruh tata kelola perusahaan dan ukuran perusahaan terhadap kinerja keuangan perusahaan artikel ilmiah. Diponegoro Journal of Accounting 7(1): 1–10.

Christian, N., Jessica, & Leondy, R. (2021). Pendeteksian financial shenanigans pada laporan keuangan PT Garuda Indonesia TBK. 10(1): 76–84.

Dakhlallh, M. M., et al. (2020). Accrual-based earnings management, real earnings management and firm performance: evidence from public shareholders listed firms on Jordanian’s stock market. Journal of Advanced Research in Dynamical and Control Systems 12(1): 16–27. 10.5373/jardcs/v12I1/20201004

Dechow, P. M., Richard, G. S., & Amy, P. S. (1995). Detecting earnings management. The Medical journal of Australia 2(1): 8–10.

Dewi, A. S., Desfriana, S., & Henryanto, A. (2018). Pengaruh karakteristik dewan komisaris terhadap kinerja perusahaan manufaktur di bursa efek Indonesia. Jurnal Benefita 3(3): 445.

Erawati, Teguh, & Fitri, W. (2019). Pengaruh corporate governance, ukuran perusahaan, dan leverage terhadap kinerja keuangan perusahaan di bursa efek Indonesia (Studi kasus perusahaan manufaktur yang terdaftar di bursa efek Indonesia periode 2013-2017 ). Jurnal Akuntansi Pajak Dewantara 1(2): 129–37.

Goel, A., & Renuka, S. (2020). Effect of board size on firm's performance: Evidences from India effect of board size on firm’s performance: Evidences from India. International Journal of Applied Business and Economic Research 15(22): 139–51.

Hidayat, A. A., & Sidharta, U. (2018). Board characteristics and firm performance: empirical evidence from Turkey. The Journal of The University of Duhok 21(1): 423–30.

Khuong, N. V., Nguyen T. T. H., & Phung, A. T. (2019). The relationship between real earnings management and firm performance: the case of energy firms in Vietnam. International Journal of Energy Economics and Policy 9(2): 307–14.

Merendino, A., & Rob, M. (2019). The board of directors and firm performance: empirical evidence from listed companies. Corporate Governance (Bingley) 19(3): 508–51.

Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics 42(3): 335–70.

Santoso, Aprih., & Rahmatya, W. (2017). The effect of earnings management on company’s performance with audit quality and company’s size as moderating variabel. Telaah Bsnis 18(2): 97–106.

Tambunan, J. T. A., & Bulan, P. (2018). Pengaruh ukuran perusahaan, leverage dan struktur modal terhadap kinerja keuangan perusahaan (Studi pada perusahaan manufaktur sektor aneka industri tahun 2012-2016). Diponegoro Journal Of Social And Politic: 1–10.

Taouab, Omar, & Zineb, I. (2019). Firm performance: definition and measurement models.” European Scientific Journal ESJ 15(1): 93–106.

Vieira, E. S. (2018). Board of directors characteristics and performance in family firms and under the crisis.” Corporate Governance (Bingley) 18(1): 119–42.

Wijayanti, H., Soni, A. I., & Nurmala, A. (2014). Pengaruh manajemen laba riil terhadap kinerja perusahaan dengan pendekatan arus kas operasi.” Jurnal Economia 10(1): 11–23.

Yusnita, H., Mulyadi, & Erick. (2015). “Pengaruh Manajemen Laba Akrual Dan Aktivitas Manajemen Laba Riil Terhadap Kinerja Perusahaan.” Journal of Auditing, Finance and Forensic Accounting 03(1): 1–16.



  • There are currently no refbacks.

 Creative Commons License

The International Journal Business Review (The Jobs Review) is licensed under a Creative Commons Attribution-ShareAlike 4.0

View My Stats