Track: Case Studies

Abstract

Earnings quality is the ability of earnings to describe the actual state of the company's profits, able to estimate future profits, and as a review when making decisions. There is several factors that affect earnings quality, namely board diversity (presence of female directors, age diversity of the board of directors, educational background of members of the board of directors, proportion of independent commissioners) and audit quality. This study aims to determine how the influence of the presence of female directors, age diversity of the board of directors, educational background of members of the board of directors, the proportion of independent commissioners and audit quality on earnings quality. This study uses quantitative methods. Non-financial State-Owned Enterprises listed on the Indonesia Stock Exchange for the 2016-2020 period are the population in this study. There are 16 companies that are used as research samples through a purposive sampling method. In this study, panel data regression analysis was used as a data analysis method and used eviews 12 software. Results showed that the presence of female directors, the diversity of the age of the board of directors, the educational background of the members of the board of directors, the proportion of independent commissioners and the quality of the audit simultaneously affected earnings quality. Partially, the educational background of the board of directors and audit quality affect earnings quality, while the presence of female directors, the age diversity of the board of directors and the proportion of independent commissioners have no effect on earnings quality.