Profit Quality on LQ 45 Stock Index: Study of the Effect of Investment Opportunity Set, Corporate Governance, Liquidity, and Leverage on Companies Listed on the Indonesia Stock Exchange
Keywords:
Investment Opportunity Set, Independent Commissioner, Managerial Ownership Liquidity, LeverageAbstract
A company's financial reports are a basic need for its users, one of which is information about company profits. Profits are said to be of high quality if the reported profits can be used by users of financial statements to make the best decisions and meet the qualitative characteristics of relevant and reliable financial reports. The aim of this research is to determine the influence of Investment Opportunity Set, Corporate Governance, Liquidity, and Leverage on Earnings Quality in companies with LQ 45. This research was conducted using a quantitative approach, using secondary data. The analysis technique used is panel data regression. The observations in this research amounted to 182 data from 26 companies on the LQ 45 stock index listed on the BEI for 2020 - 2023. The results of the research partially show that Investment Opportunity Set and Liquidity have a significant and influential effect on Earnings Quality. Meanwhile, Independent Commissioners, Managerial Ownership and Leverage partially show no significant effect on Earnings Quality.
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