The Relationship of Information Asymmetry and Company Size with Earning Management

Abstract

This study aims to know how the influence of information asymmetry and company size toward earning management on Infrastructure, Utility & Transportation Companies listed in Indonesia Stock Exchange period 2014-2016. Factors tested in this study are information asymmetry and company size as independent variables. Earning management as a dependent variable. The research method used in this research is explanatory method. The population in this research is Infrastructure, Utility & Transportation Companies listed on Indonesia Stock Exchange period 2014-2016 which amounted to 60 companies. The technique of determining the sample used in this study is non probability sampling with purposive sampling method, so the number of samples as many as 39 companies. The data analysis used in this study is multiple linear regression analysis at significance level of 5%. The program used in analyzing data using Eviews 7. The results showed that partially and simultaneously the information asymmetry and company size had an influence toward earning management.