THE EFFECT OF CAPITAL STRUCTURE AND COMPANY SIZE ON PROFIT QUALITY IN MANUFACTURING COMPANIES IN THE 2019-2022 PERIOD

Abstract

This study aims to examine the effect of capitalstructure and company size on earnings quality. This type of research is quantitative research. This study uses secondary data obtained from the company's annual report. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2019- 2022 period. While the sample in this study was obtained using the purposive sampling method, namely the selection of samples withpredetermined criteria, based on this method, 115 companies were obtained from 125 manufacturing companies. The analysismethod used in this study is multiple linear regression analysis using the Stata 17 application program. The results of this study indicate that the capital structure variable measured using leverage states that capitalstructure has a significant effect on earnings quality, while company size measured using the natural logarithm of total assets states that company size has a significant effect on earnings quality.