The Leverage, Company Size, and Capital Structure on Financial Performance through Earning Management in Property and Real Estate Companies Listed on the Indonesia Stock Exchange 2016-2020

Abstract

The research objective was to analyze the impact of firm size, leverage, and capital structure on financial performance through earnings management in real estate and property companies listed on the Indonesia Stock Exchange in 2016–2020. This kind of study is quantitative and uses the documentation approach. There were 62 companies in the study's population, and the purposive selection approach was used to pick a sample of 17 of those companies. Path analysis and multiple linear regression are the data analysis techniques used in this study. The findings demonstrated that capital structure, business size, leverage, and earnings management significantly and favourably impacted financial performance. Capital structure and firm size partially had a positive and significant effect on earnings management. Capital structure and firm size positively and significantly affect financial performance through earnings management. Still, leverage has a positive and negligible impact on financial performance through earnings management. In contrast, leverage had a positive and insignificant effect on earnings management.