PENGARUH PROFITABILITAS, UKURAN PERUSAHAAN DAN KEBIJAKAN DIVIDEN TERHADAP EARNINGS MANAGEMENT PERUSAHAAN SUBSEKTOR BATUBARA YANG TERDAFTAR DI BEI TAHUN 2020-2024

This study aims to analyse the influence of profitability, firm size, and dividend policy on earnings management in companies within the coal sub-sector listed on the Indonesia Stock Exchange for the period 2020–2024. The study is motivated by the high volatility of the coal industry, which may encourage companies to engage in earnings management, as well as the differing findings of previous research regarding the factors influencing earnings management. This study employs a quantitative approach using secondary data obtained from companies’ annual financial reports. The sampling technique utilised purposive sampling, resulting in a sample of 12 coal sub-sector companies with a total of 60 panel data observations over the study period. Earnings management was measured using discretionary accruals via the Modified Jones Model. The data analysis technique employed was panel data regression using the EViews software. The results of the study indicate that profitability influences earnings management in coal sub-sector companies listed on the Indonesia Stock Exchange for the period 2020–2024. Meanwhile, firm size and dividend policy do not influence earnings management. These findings suggest that a firm’s profitability is a stronger predictor of management’s propensity to engage in earnings management than firm size and dividend policy. These findings indicate that a firm’s financial characteristics play a role in influencing management’s propensity to engage in earnings management. The results of this study may serve as a basis for firms to improve the transparency of their financial statements and for investors to make investment decisions.