The Effect Of Ownership Structure On Earnings Management: Moderation And Mediation Models

Afifah, Nur (2025) The Effect Of Ownership Structure On Earnings Management: Moderation And Mediation Models. Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi), 10 (1). pp. 501-518. ISSN 2621-5306

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Abstract

This study examines the influence of ownership structures on earnings management practices among manufacturing firms listed on the Indonesia Stock Exchange (IDX) during 2021–2024. It further investigates whether board composition heterogeneity moderates this relationship and whether firm performance mediates it. A quantitative design was employed, utilizing audited financial statements and annual corporate reports as secondary data. From purposive sampling, 100 firm-level observations were analysed using Partial Least Squares–Structural Equation Modelling (PLS-SEM) with SmartPLS. The findings indicate that concentrated ownership, managerial shareholding, foreign equity participation, and institutional investment do not significantly affect earnings management behaviour. Likewise, diversity in board membership does not alter the ownership–earnings management nexus. In contrast, firm performance shows a significant positive association with earnings management, though it does not operate as a mediating mechanism. Interpreted through agency theory, the results suggest that prevailing ownership configurations and board oversight remain insufficient to mitigate opportunistic managerial conduct, particularly under performance pressures. These insights contribute to ongoing debates on corporate governance and reporting credibility, offering implications for investors, regulators, and decision-makers. However, the conclusions are constrained by the study’s sectoral focus and limited temporal scope, which restricts broader generalization.

Item Type:	Article
Uncontrolled Keywords:	Ownership Structure; Earnings Management; Financial Performance; Board Diversity
Subjects:	Economic And Business > Accounting Economic And Business
Divisions:	Faculty of Economic and Business > Accounting Study Program Library of Congress Subject Areas > Accounting Study Program Accounting Study Program
Depositing User:	Nur Afifah
Date Deposited:	17 Jun 2026 03:59
Last Modified:	17 Jun 2026 03:59
URI:	http://eprints.umg.ac.id/id/eprint/16382

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