The Effect of Profitability, Liquidity and Leverage on Earning Quality with Company Size as a Moderation Variable

Abstract

The purpose of this study is to examine the Effect of Profitability, Liquidity, and Leverage on Earnings Quality with Company Size as a Moderation Variable (Case Study on the Food and Beverage Sub-Sector Listed on the Indonesia Stock Exchange and Malaysia Stock Exchange in 2018-2021. This research applies secondary data gained from annual reports obtained from the Indonesian Stock Exchange and Malaysia Stock Exchange company websites. The total sampling used in this study is 88 data. The results of this study reveal that profitability significantly negatively affects earnings quality. Significantly, leverage and liquidity do not affect earnings quality. Profitability, liquidity and leverage do not affect earnings quality on company size as a moderation variable. Researchers can develop this study by using different proxies for each variable in order to obtain more robust results.