The Role of Profitability in Moderating the Effect of Managerial Ownership and Sales Growth on Earning Management

This research aims to determine and describe the role of Profitability in moderating the influence of Managerial Ownership and Sales Growth on Earning Management in LQ45 companies listed on the Indonesia Stock Exchange. The population in this research are companies that are included in the LQ45 group in 2020-2022. The sampling technique used in this research is a purposive sampling technique so that the sample obtained in this research is 28 companies. The data analysis techniques used in this research are Panel Data Regression and Moderate Regression Analysis. The results provide empirical evidence that Managerial Ownership has an effect on Earning Management, while Sales Growth has an effect on Earning Management. In addition, this research provides evidence that the interaction of Managerial Ownership and Profitability can weaken the relationship between the influence of Managerial Ownership on Earning Management.