THE EFFECT OF CAPITAL STRUCTURE, LIQUIDITY, COMPANY SIZE AND MANAGERIAL OWNERSHIP ON EARNINGS QUALITY

Abstract

This study aims to empirically examine the influence of capital structure, liquidity, firm size, and managerial ownership on earnings quality. The approach used is a method utilizing secondary data. The research sample was determined through a purposive sampling technique, resulting in 16 companies as research objects. Data processing was performed using the SPSS 25 program. The results of the study indicate that capital structure and managerial ownership have a significant negative effect on earnings quality. Meanwhile, firm size has a positive effect on earnings quality. Furthermore, the liquidity variable has no effect on earnings quality.