The Effect of Accrual and Real Earnings Management on Financial Reporting Quality with Corporate Governance as a Moderating Variable

Abstract

This study examines the effect of accrual and real earnings management on financial reporting quality, as well as the moderating role of Good Corporate Governance (GCG). Using data from transportation, logistics, and consumer non-cyclical companies listed on the Indonesia Stock Exchange (IDX) during 2020–2023, the analysis was conducted through moderated regression using SPSS 24. The results indicate that accrual earnings management has a significant negative effect on financial reporting quality, while real earnings management shows no significant impact. GCG effectively moderates the relationship between accrual earnings management and reporting quality but not for real earnings management. These findings highlight the importance of effective corporate governance in maintaining high-quality financial reporting. Future research is recommended to expand the industrial scope, observation period, and the comprehensiveness of GCG measurement.