MODERASI KEMAMPUAN MANAJERIAL DALAM KETIDAKPASTIAN LINGKUNGAN DAN MANAJEMEN LABA

Abstract

Environmental uncertainty is one of the major problems faced by companies today. Even though there is pressure on the company to achieve performance targets, earnings management that is carried out can produce inaccurate and misleading financial reports for users of information such as investors and creditors. However, the results of a recent study indicate that moderating managerial ability can weaken the relationship between environmental uncertainty and earnings management. The research was conducted on manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2021 period using a purposive sampling method. The samples analyzed were 344 company data. The results showed that the greater the environmental uncertainty faced by the company, the higher the level of earnings management carried out by the company. However, moderating managerial ability is proven to weaken the relationship between environmental uncertainty and earnings management. This has important implications for decision makers in companies. If a company experiences a high level of environmental uncertainty, then the company must strengthen its managerial capabilities to reduce the tendency to do earnings management. This can be done through improving the quality of human resources, increasing information transparency, or developing a better internal control system.