Main Article Content


The purpose of this research is to provide empirical evidence on the influence of accrual and real-based earnings management and institutional ownership on leverage. The dependent variable is leverage. The independent variables are accrual earnings management (DAC), real earnings management (CFO, PROD, DISEXP), and institutional ownership. This research uses multiple linear regression. The sample used is a manufacturing company listed on the Indonesian Stock Exchange and has an ESG score from 2018-2022.  The sample for this research was selected using a purposive sampling technique with a total of 120 observation data. The results of this research show that earnings management using 4 proxies, namely accrued earnings management (DAC) and real earnings management (CFO, PROD, DISEXP) has a significant influence on leverage. Institutional ownership does not have a significant effect on leverage. The implications of this research are very large because it provides support for the application of agency theory. However, it is crucial to highlight that the scope of this research is confined to Indonesian manufacturing enterprises, therefore the conclusions may not be immediately transferable to other nations.


Accrual earnings management Real earnings management Institutional ownership Leverage

Article Details

How to Cite
Anggraini, A., & Suranta, E. (2023). The Effect of Accrual Earnings Management, Real Earnings Management, and Institutional Ownership on Leverage. Ilomata International Journal of Management, 4(4), 617-631.


  1. Adeneye, Y., & Kammoun, I. (2022). Real earnings management and capital structure: Does environmental, social and governance (ESG) performance matter? Cogent Business & Management, 9(1), 2130134.
  2. An, Z., Li, D., & Yu, J. (2016). Earnings management, capital structure, and the role of institutional environments. Journal of Banking & Finance, 68, 131-152.
  3. Astuti, A. Y., Nuraina, E., & Wijaya, A. L. (2017, October). Pengaruh ukuran perusahaan dan leverage terhadap manajemen laba. In FIPA: Forum Ilmiah Pendidikan Akuntansi (Vol. 5, No. 1).
  4. Butt, S. A., & Hasan, A. (2009). Impact of ownership structure and corporate governance on capital structure of Pakistani listed companies. International Journal of Business & Management, 4(2).
  5. Campa, D., Ginesti, G., & Allini, A. (2023). CFO Characteristics and Real Earnings Management. European Accounting Review, 1-34.
  6. Chamberlain, T. W., Butt, U. R., and Sarkar, S., (2014). « Accruals and Real Earnings Management around Debt Covenant Violations ». International Advances in Economic Research, 20(1), 119–120.
  7. Chandra, S. M., & Djashan, I. A. (2018). Pengaruh leverage dan faktor lainnya terhadap manajemen laba pada perusahaan non keuangan. Jurnal Bisnis Dan Akuntansi, 20(1), 13-20.
  8. Chung C Y and Wang K (2014), “Do Institutional Investors Monitor Management? Evidence from the Relationship Between Institutional Ownership and Capital Structure”, The North American Journal of Economics and Finance, Vol. 30, pp. 203-233.
  9. Crutchley, C. E., Jensen, M. R., Jahera Jr, J. S., & Raymond, J. E. (1999). Agency problems and the simultaneity of financial decision making: The role of institutional ownership. International review of financial analysis, 8(2), 177-197.
  10. Dang, T. L., Dang, M., Le, P. D., Nguyen, H. N., Nguyen, M. N., & Henry, D (2018). Does earnings management matter for firm leverage? An international analysis. Asia-Pacific Journal of Accounting & Economics, 25,1–25.
  11. Dewi, P. E. P., & Wirawati, N. G. P. (2019). Pengaruh Leverage Terhadap Manajemen Laba Dengan Corporate Governance Sebagai Variabel Pemoderasi. E-Jurnal Akuntansi, 505.
  12. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360.
  13. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American Economic Review, 76(2), 323-329.
  14. Kasaboğlu, O. T., & Çinko, M. (2017). A study of the relationship between institutional ownership and Capital structure: Evidence from Turkey. Marmara J Econ, 1, 155-170.
  15. Kiran, A. S., & Narender, M. (2021). An Empirical Study on the Relationship Between Institutional Ownership and Capital Structure. IUP Journal of Corporate Governance, 20(1), 28-42.
  16. Kothari, S. P., Mizik, N., & Roychowdhury, S. (2016). Managing for the moment: The role of earnings management via real activities versus accruals in SEO valuation. The accounting review, 91(2), 559-586.
  17. Lazzem, S., & Jilani, F. (2018). The impact of leverage on accrual-based earnings management: The case of listed French firms. Research in International Business and Finance, 44, 350-358.
  18. Mayangsari, J., & Riharjo, I. B. (2018). Pengaruh Leverage Terhadap Manajemen Laba Dengan Good Corporate Governance Sebagai Variabel Moderating. Jurnal Ilmu dan Riset Akuntansi (JIRA), 7(7).
  19. Pinheiro, A.B., Oliveira, M.C. and Lozano, M.B. (2022), “The mirror effect: influence of national governance on environmental disclosure in coordinate economies”, Journal of Global Responsibility, Vol. 13 No. 4, pp. 380-395
  20. Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of accounting and economics, 42(3), 335-370.
  21. Ruchiatna, G., Midiastuty, P. P., & Suranta, E. (2020). Pengaruh karakteristik komite audit terhadap fraudulent financial reporting ( The effect of audit committee characteristics on fraudulent financial reporting ). Jurnal Akuntansi, Keuangan, Dan Manajemen (Jakman), 1(4), 255–264
  22. Safitri, R. S., & Oktris, L. (2023). The Effect of Institutional Ownership, Leverage, and Liquidity on Tax Avoidance with Company Size as a Moderating Variable. Saudi J Econ Fin, 7(4), 220-231.
  23. Sabrina, O. Z., Fachruzzaman, Midiastuty, P. P., & Suranta, E. (2020). Pengaruh Koneksitas Organ Corporate Governance, Ineffective Monitoring dan Manajemen Laba Terhadap Fraudulent Financial Reporting (The Effect of Corporate Governance, Ineffective Monitoring, and Earnings Management Concept On Fraudulent Financial Reporting. Jurnal Akuntansi Keuangan Dan Manajemen, 1(2), 109–122
  24. Schipper, K. (1989). Earnings management. Accounting horizons, 3(4), 91.
  25. Shagan, J. (2022). Pengaruh Good Corporate Governance, Karakteristik, Dan Atribut Audit Perusahaan Terhadap Pengungkapan Risiko Perusahaan. Parsimonia-Jurnal Ekonomi dan Bisnis, 9(2), 44-56.
  26. Shakil, M.H., Mahmood, N., Tasnia, M. and Munim, Z.H. (2019), “Do environmental, social and governance performance affect the financial performance of banks? A cross-country study of emerging market banks”, Management of Environmental Quality: An International Journal, Vol. 30 No. 6, pp. 1331-1344
  27. Sherly, E. N., Indriani, R., & Suranta, E. (2016). Pengaruh penghindaran pajak, kepemilikan institusional dan profitabilitas terhadap biaya hutang. Jurnal Fairness, 6(2), 135-148.
  28. Slacik, J., Grüb, B. and Greiling, D. (2022), “New wine in old bottles: governing logics for applying sustainability management control systems in Austrian electric utilities”, International Journal of Energy Sector Management, Vol. 16 No. 1, pp. 50-77.
  29. Suranta, E., Midiastuty, P. P., Marietza, F., & Ramadhani, F. (2014). Pengaruh Grup Bisnis Terhadap Manajemen Laba Dimoderasi Oleh Kepemilikan Saham Pengendali, Perencanaan Pajak, Dan Arus Kas Operasi.
  30. Tarighi, H., Appolloni, A., Shirzad, A., & Azad, A. (2022). Corporate social responsibility disclosure (CSRD) and financial distressed risk (FDR): does institutional ownership matter? Sustainability, 14(2), 742.
  31. Wulanda, M., & Aziza, N. (2019). Pengaruh Corporate Governance Terhadap Nilai Perusahaan dan Manajemen Laba Sebagai Variabel Intervening. AKTSAR: Jurnal Akuntansi Syariah, 2(1), 83-108.
  32. Wulandari, C., & Efendi, D. (2022). Pengaruh profitabilitas terhadap nilai perusahaan dengan corporate social responsibility sebagai variabel moderasi. Jurnal Ilmu Dan Riset Akuntansi (JIRA), 11(6).
  33. Zakia, V., Diana, N., & Mawardi, M. C. (2019). Pengaruh kepemilikan manajerial, kepemilikan institusional, ukuran perusahaan, leverage, profitabilitas, pertumbuhan penjualan terhadap manajemen laba dengan good corporate governance sebagai variabel moderating. E_Jurnal Ilmiah Riset Akuntansi, 8(04).

Most read articles by the same author(s)