Institutional Ownership, External Auditor Reputation, Financial Leverage, and Earnings Management

Profits show the performance of managers before related parties, such as investors and creditors. Therefore, often incorrectly state them in published annual financial reports to protect their reputation. Undoubtedly, this action needs be reduced by governance mechanism, like supervision institutions owner audit external public accountant firm. To control these two effects on profits management, additionally, study employs leverage. This aims prove impact institutional ownership, auditor reputation, leverage management. The population samples are non-financial companies establishing LQ45 index from 2014 2018, getting taken simple random sampling technique. Also, regression model performs technique examine data. By denoting testing hypothesis results discussion section, summarizes that ownership reputable effectively decrease Additionally, although firms have much debt, they cut tendency manage because applying transparency.