The Impact Of Ownership Structure And Control Variables On Earnings Management: A Case Study With Dividend Payout As A Moderating Variable
DOI:
https://doi.org/10.31000/bvaj.v9i2.15093Keywords:
Ownership structure, Real earning management, Accrual earning management, Dividend payoutAbstract
This study examines the effect of ownership structure and control variables on earnings management, with dividend payout serving as a moderating variable. Ownership structure includes concentration ownership, foreign ownership, state ownership, family ownership, and managerial ownership, all of which are believed to significantly influence managerial decisions in managing earnings. These ownership types may create different levels of control and monitoring, which in turn affect the extent of earnings manipulation. Furthermore, control variables such as firm size, leverage, growth, audit quality, and return on assets (ROA) are incorporated to better understand the factors influencing earnings management behavior. Dividend payout is expected to moderate the relationship between ownership structure and earnings management, as dividend policies may signal firm transparency and reduce the incentive for earnings manipulation. The study employs secondary data obtained from annual reports of companies listed on the Indonesia Stock Exchange (IDX) over the past five years. The contribution of this research lies in providing empirical evidence from an emerging market context, specifically Indonesia, where ownership structures are often concentrated and dominated by families, the state, or foreign investors. By integrating dividend payout as a moderating variable, this study offers a more comprehensive understanding of how corporate governance mechanisms interact to influence earnings management practices. The novelty of this study is its combined analysis of multiple ownership types alongside dividend policy moderation within a single integrated framework, offering new insights into how ownership diversity and dividend policies jointly shape the quality of financial reporting in emerging economies.
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