By comparing shareholders funds to total assets we can produce a confidence factor for unsecured creditors to the business. Solvency Ratio Shareholders Funds x 100 Total Assets This ratio measures if the total liabilities of a business (both secured and unsecured) are too high, indicating a possible over dependency on outside sources for long-term financial support. Stock Financing Ratio Stock + Work in Progress Current Assets-Current Liabilities Compares stock and work in progress to working capital and therefore shows how sensitive working capital is to a fall in stock value. It is generally considered to be a more accurate assessment of a company's financial health than the current ratio as it excludes stock, thus reducing the risk of relying on a ratio that may include slow moving or redundant stock. Ratio Comparison of financial statement elements in the form of quotient Quick Ratio/Acid test ratio/Current ratio Current Assets Current Liabilities One of the most universally known ratios, indicates the ability of a company to pay its short-term creditors from Liquidity Ratio Current Assets-Stock Current Liabilities This ratio indicates the ability of a company to pay its debts as they fall due. Novelty – The study supports that the manager in a company will engage in earnings management to receive a bonus from investors because they have received a higher profit.' Findings – The research results show that return on assets influences earnings management and growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence do not influence earnings management. The hypothesis is tested using multiple regression with an SPSS program to investigate the influence of each independent variable to earnings management. The sample was chosen by using a purposive sampling method. The research uses three recent years of data and tests variables that have not been used by prior research. Methodology/Technique – The population of this research consist of various sectors of non-financial companies that were listed on the Indonesian Stock Exchange (IDX) between 20. 'Objective – The purpose of this research is to analyze the effect of growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence toward earnings management.
Objective – The purpose of this research is to analyze the effect of growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence toward earnings management.