THE EFFECT OF INVESTMENT OPPORTUNITY SET, COMPANY AGE, LIQUIDITY, AND FINANCIAL LEVERAGE ON EARNINGS QUALITY
AN EMPIRICAL STUDY ON LQ45 INDEX COMPANIES ON THE INDONESIA STOCK EXCHANGE
Keywords:
company age, earnings quality, financial leverage, investment opportunity set, liquidity
Abstract
This study examines the effect of the Investment Opportunity Set (IOS), company age (Firm Age), liquidity, and financial leverage (Financial Leverage) on earnings quality in LQ45 Index companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2023 period. A quantitative approach is employed using multiple linear regression on secondary data from the annual financial statements of LQ45-listed companies. The results indicate that Investment Opportunity Set (IOS) has a significantly positive effect on earnings quality, implying that the greater a company's investment opportunities, the better its earnings quality. Firm Age has a positive but not significant effect, suggesting that older firms tend to have better earnings quality, although the effect is not statistically significant. Liquidity has a significantly negative effect, indicating that highly liquid firms tend to hold excessive cash, hindering profitability optimization and reducing earnings quality. Financial Leverage has a significantly positive effect, demonstrating that well-managed debt utilization enhances earnings quality. Simultaneously, Investment Opportunity Set, Firm Age, Liquidity, and Financial Leverage significantly influence earnings quality. These findings provide valuable insights for investors, financial analysts, and regulators in assessing factors affecting earnings quality and formulating more effective investment policies and financial strategies to enhance transparency and accuracy in financial reporting within capital markets.
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References
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Arisonda, R. (2018). Pengaruh Struktur Modal, Likuiditas, Pertumbuhan Laba, Ukuran Perusahaan dan Invesment Opportunity Set (IOS) Terhadap Kualitas Laba pada Perusahaan Manufaktur yang Terdaftar Di BEI. ADVANCE: Journal of Accounting, 5(2), 42-47.
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Chorafas, D. N. (2001). Implementing and Auditing the Internal Control System. New York: Springer.
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Hakim, M. Z., & Abbas, D. S. (2019). Pengaruh Ukuran Perusahaan, Struktur Modal, Likuiditas, Investment Opportunity Set (IOS), dan Profitabilitas Terhadap Kualitas Laba (Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2017). Competitive Jurnal Akuntansi Dan Keuangan, 3(2), 26-51. doi:http://dx.doi.org/10.31000/c.v3i2.1826
Hartono, J. (1999). An Agency-Cost Explanation for Dividend Payments. Universitas Gadjah Mada. Yogyakarta.
Hasanuddin, R., Darman, Taufan, M. Y., Salim, A., Muslim, & Putra, A. H. P. K. (2021). The Effect of Firm Size, Debt, Current Ratio, and Investment Opportunity Set on Earnings Quality: An Empirical Study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(6), 179-188. doi:https://doi.org/10.13106/jafeb.2021.vol8.no6.0179
Indriani, N., & Rohman, A. (2022). Fraud Triangle dan Kecurangan Laporan Keuangan fengan Model Beneish M-Score. Jurnal Akuntansi Bisnis, 20(1), 85-104. doi:https://doi.org/10.24167/jab.v20i1.4367
Jaya, K. A. A., & Wirama, D. G. (2017). Pengaruh Investment Opportunity Set, Likuiditas, dan Ukuran Perusahaan pada Kualitas Laba. E-Jurnal Akuntansi Universitas Udayana, 21(3), 2195-2221. doi:https://doi.org/10.24843/EJA.2017.v21.i03.p18
Jensen, M. C., & Meckling, W. H. (2019). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. In R. I. Tricker (Ed.), Corporate Governance: Values, Ethics and Leadership (pp. 77-132). London: Gower Publishing.
JS Ramalho, J., & da Silva, J. V. (2009). A Two-Part Fractional Regression Model for the Financial Leverage Decisions of Micro, Small, Medium and Large Firms. Quantitative Finance, 9(5), 621-636. doi:https://doi.org/10.1080/14697680802448777
Kasmir. (2014). Analisis Laporan Keuangan. Jakarta: PT. RajaGrafindo Persada.
Loderer, C., & Waelchli, U. (2010). Firm Age and Performance. doi:https://dx.doi.org/10.2139/ssrn.1342248
Marpaung, E. I. (2019). Pengaruh Leverage, Likuiditas dan Ukuran Perusahaan Sebagai Variabel Moderasi Terhadap Kualitas Laba. Journal of Accounting, Finance, Taxation, and Auditing (JAFTA), 1(1), 1-14. doi:https://doi.org/10.28932/jafta.v1i1.1524
Marthania, N., & Setiany, E. (2022). The Effect of Good Corporate Governance and Earnings Quality on Firm Value: An Empirical Study of LQ 45 Companies, Indonesia. Journal of Economics, Finance and Accounting Studies, 4(2), 78-90. doi:https://doi.org/10.32996/jefas.2022.4.2.7
Maryasih, L., Maksum, A., Bastari, B., & Khadafi, M. (2020). The Effects of Good Corporate Governance and Financial Leverage on Earnings Quality with Book-Tax Differences as Moderation Variables (Study of Manufacturing Companies in the Indonesian Stock Exchange). Proceedings of International Conference on Multidiciplinary Research, 3(2), 65-70. doi:https://doi.org/10.32672/pic-mr.v3i2.2698
Murniati, T. (2019). Factors that Affect Earnings Quality in Manufacturing Companies Listed on IDX period 2012-2016. The Indonesian Accounting Review, 9(1), 85-98. doi:https://doi.org/10.14414/tiar.v9i1.1674
Myers, S. C. (1977). Determinants of Corporate Borrowing. Journal of financial economics, 5(2), 147-175. doi:https://doi.org/10.1016/0304-405X(77)90015-0
Nugroho, A., & Lestari, E. (2018). Analisis Faktor-Faktor yang Mempengaruhi Inovasi Organisasi di Indonesia. Jurnal Riset Manajemen dan Bisnis, 13(4), 210-224.
Pandaya, Mariska, A., & Suprapta, I. (2021). The Effect of Profitability, Firm Size, and Investment Opportunity Set (IOS) on the Earnings Quality. Journal of Research in Business, Economics, and Education, 3(4), 49-59.
Penman, S. H. (2013). Financial Statement Analysis and Security Valuation 5th Edition. New York: McGraw Hill.
Putra, J. A. (2021). Pengaruh Usia Perusahaan terhadap Kinerja Keuangan (Studi pada Bank Victoria Syariah). Entrepreneurship Bisnis Manajemen Akuntansi (E-BISMA), 2(2), 85-91. doi:https://doi.org/10.37631/e-bisma.v2i2.441
Putra, N. Y., & Subowo. (2016). The Effect of Accounting Conservatism, Investment Opportunity Set, Leverage, and Company Size on Earnings Quality. Accounting Analysis Journal, 5(4), 299-306. doi:https://doi.org/10.15294/aaj.v5i4.10691
Sartono, A. (2019). Manajemen Keuangan Teori dan Aplikasi Edisi 4. Yogyakarta: Penerbit BPFE.
Setyaningrum, I., & Nursita, M. (2024). Pengaruh Pertumbuhan Perusahaan, Umur Perusahaan dan Financial Distress terhadap Manajemen Laba. AKADEMIK: Jurnal Mahasiswa Ekonomi & Bisnis, 4(3), 1216-1229. doi:https://doi.org/10.37481/jmeb.v4i3.915
Siladjaja, M., & Jasman, J. (2024). The Role of Earnings Quality and Future Returns: An Illustrative Simulation of Rational Decision Model. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 1-14. doi:https://doi.org/10.1016/j.joitmc.2023.100191
Smith Jr, C. W., & Watts, R. L. (1992). The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies. Journal of financial economics, 32(3), 263-292. doi:https://doi.org/10.1016/0304-405X(92)90029-W
Sulianti, V. (2021). Analisis Pengaruh Ukuran Perusahaan, Umur Perusahaan dan Leverage terhadap Kualitas Laba pada Perusahaan Sektor Industri Barang Konsumsi di Bursa Efek Indonesia. FIN-ACC (Finance Accounting), 5(12), 1875-1885.
Syahrani, T. (2019). Pengaruh Profitabilitas, Kualitas Audit, Nilai Perusahaan, Dewan Komisaris Independen dan Ukuran Dewan Komisaris Terhadap Manajemen Laba Perusahaan Manufaktur yang Terdaftar di BEI. Jurnal Fairness, 9(1), 45-58. doi:https://doi.org/10.33369/fairness.v9i1.15221
Taofik, M. Y., Djuniardi, D., & Purnama, D. (2021). Profitabilitas dan Leverage Terhadap Praktik Perataan Laba dengan Good Corporate Governance Sebagai Variabel Moderasi. Jurnal Akuntansi Bisnis dan Ekonomi, 7(2), 1981-1998. doi:https://doi.org/10.33197/jabe.vol7.iss2.2021.775
Wulansari, Y. (2013). Pengaruh Investment Opportunity Set, Likuiditas dan Leverage Terhadap Kualitas Laba pada Perusahaan Manufaktur yang Terdaftar di BEI. Jurnal Akuntansi, 1(2), 1-33.
Andriani, E. A. (2021). Analisis Pengaruh Rasio Keuangan, Ukuran Perusahaan dan Inflasi Terhadap Potensi Financial Distress pada Masa Pandemi Covid-19. Universitas Negeri Malang, Malang.
Aningrum, D. P., & Muslim, A. I. (2021). Pengaruh Investment Opportunity Set dan Penerapan Good Corporate Governance terhadap Kualitas Laba. Wahana Riset Akuntansi, 8(2), 156-168. doi:https://doi.org/10.24036/wra.v8i2.111845
Ardianti, R. (2018). Pengaruh Alokasi Pajak Antar Periode, Persistensi Laba, Profitabilitas, dan Likuiditas Terhadap Kualitas Laba (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2012-2016). Jurnal Akuntansi, 6(1), 88-105. doi:https://doi.org/10.24964/ja.v6i1.593
Arhinful, R., & Radmehr, M. (2023). The Impact of Financial Leverage on the Financial Performance of the Firms Listed on the Tokyo Stock Exchange. Sage Open, 13(4). doi:https://doi.org/10.1177/21582440231204099
Arisonda, R. (2018). Pengaruh Struktur Modal, Likuiditas, Pertumbuhan Laba, Ukuran Perusahaan dan Invesment Opportunity Set (IOS) Terhadap Kualitas Laba pada Perusahaan Manufaktur yang Terdaftar Di BEI. ADVANCE: Journal of Accounting, 5(2), 42-47.
Arrow, K. J. (1962). The Economic Implications of Learning by Doing. The review of economic studies, 29(3), 155-173. doi:https://doi.org/10.2307/2295952
Belkaoui, A. R. (2000). Teori Akuntansi Buku 1. Jakarta: Penerbit Salemba Empat.
Brigham, E. F., & Houston, J. F. (2013). Fundamentals of Financial Management Thirteenth Edition. Boston: South-Western Cengage Learning.
Chorafas, D. N. (2001). Implementing and Auditing the Internal Control System. New York: Springer.
Darwis, D., Meylinda, & Suaidah. (2022). Pengukuran Kinerja Laporan Keuangan Menggunakan Analisis Rasio Profitabilitas pada Perusahaan Go Public. Jurnal Ilmiah Sistem Informasi Akuntansi, 2(1), 19-27. doi:https://doi.org/10.33365/jimasia.v2i1.1875
Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. Academy of management review, 14(1), 57-74. doi:https://doi.org/10.5465/amr.1989.4279003
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 Edisi 9. Semarang: Badan Penerbit Universitas Diponegoro.
Hakim, M. Z., & Abbas, D. S. (2019). Pengaruh Ukuran Perusahaan, Struktur Modal, Likuiditas, Investment Opportunity Set (IOS), dan Profitabilitas Terhadap Kualitas Laba (Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2017). Competitive Jurnal Akuntansi Dan Keuangan, 3(2), 26-51. doi:http://dx.doi.org/10.31000/c.v3i2.1826
Hartono, J. (1999). An Agency-Cost Explanation for Dividend Payments. Universitas Gadjah Mada. Yogyakarta.
Hasanuddin, R., Darman, Taufan, M. Y., Salim, A., Muslim, & Putra, A. H. P. K. (2021). The Effect of Firm Size, Debt, Current Ratio, and Investment Opportunity Set on Earnings Quality: An Empirical Study in Indonesia. The Journal of Asian Finance, Economics and Business, 8(6), 179-188. doi:https://doi.org/10.13106/jafeb.2021.vol8.no6.0179
Indriani, N., & Rohman, A. (2022). Fraud Triangle dan Kecurangan Laporan Keuangan fengan Model Beneish M-Score. Jurnal Akuntansi Bisnis, 20(1), 85-104. doi:https://doi.org/10.24167/jab.v20i1.4367
Jaya, K. A. A., & Wirama, D. G. (2017). Pengaruh Investment Opportunity Set, Likuiditas, dan Ukuran Perusahaan pada Kualitas Laba. E-Jurnal Akuntansi Universitas Udayana, 21(3), 2195-2221. doi:https://doi.org/10.24843/EJA.2017.v21.i03.p18
Jensen, M. C., & Meckling, W. H. (2019). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. In R. I. Tricker (Ed.), Corporate Governance: Values, Ethics and Leadership (pp. 77-132). London: Gower Publishing.
JS Ramalho, J., & da Silva, J. V. (2009). A Two-Part Fractional Regression Model for the Financial Leverage Decisions of Micro, Small, Medium and Large Firms. Quantitative Finance, 9(5), 621-636. doi:https://doi.org/10.1080/14697680802448777
Kasmir. (2014). Analisis Laporan Keuangan. Jakarta: PT. RajaGrafindo Persada.
Loderer, C., & Waelchli, U. (2010). Firm Age and Performance. doi:https://dx.doi.org/10.2139/ssrn.1342248
Marpaung, E. I. (2019). Pengaruh Leverage, Likuiditas dan Ukuran Perusahaan Sebagai Variabel Moderasi Terhadap Kualitas Laba. Journal of Accounting, Finance, Taxation, and Auditing (JAFTA), 1(1), 1-14. doi:https://doi.org/10.28932/jafta.v1i1.1524
Marthania, N., & Setiany, E. (2022). The Effect of Good Corporate Governance and Earnings Quality on Firm Value: An Empirical Study of LQ 45 Companies, Indonesia. Journal of Economics, Finance and Accounting Studies, 4(2), 78-90. doi:https://doi.org/10.32996/jefas.2022.4.2.7
Maryasih, L., Maksum, A., Bastari, B., & Khadafi, M. (2020). The Effects of Good Corporate Governance and Financial Leverage on Earnings Quality with Book-Tax Differences as Moderation Variables (Study of Manufacturing Companies in the Indonesian Stock Exchange). Proceedings of International Conference on Multidiciplinary Research, 3(2), 65-70. doi:https://doi.org/10.32672/pic-mr.v3i2.2698
Murniati, T. (2019). Factors that Affect Earnings Quality in Manufacturing Companies Listed on IDX period 2012-2016. The Indonesian Accounting Review, 9(1), 85-98. doi:https://doi.org/10.14414/tiar.v9i1.1674
Myers, S. C. (1977). Determinants of Corporate Borrowing. Journal of financial economics, 5(2), 147-175. doi:https://doi.org/10.1016/0304-405X(77)90015-0
Nugroho, A., & Lestari, E. (2018). Analisis Faktor-Faktor yang Mempengaruhi Inovasi Organisasi di Indonesia. Jurnal Riset Manajemen dan Bisnis, 13(4), 210-224.
Pandaya, Mariska, A., & Suprapta, I. (2021). The Effect of Profitability, Firm Size, and Investment Opportunity Set (IOS) on the Earnings Quality. Journal of Research in Business, Economics, and Education, 3(4), 49-59.
Penman, S. H. (2013). Financial Statement Analysis and Security Valuation 5th Edition. New York: McGraw Hill.
Putra, J. A. (2021). Pengaruh Usia Perusahaan terhadap Kinerja Keuangan (Studi pada Bank Victoria Syariah). Entrepreneurship Bisnis Manajemen Akuntansi (E-BISMA), 2(2), 85-91. doi:https://doi.org/10.37631/e-bisma.v2i2.441
Putra, N. Y., & Subowo. (2016). The Effect of Accounting Conservatism, Investment Opportunity Set, Leverage, and Company Size on Earnings Quality. Accounting Analysis Journal, 5(4), 299-306. doi:https://doi.org/10.15294/aaj.v5i4.10691
Sartono, A. (2019). Manajemen Keuangan Teori dan Aplikasi Edisi 4. Yogyakarta: Penerbit BPFE.
Setyaningrum, I., & Nursita, M. (2024). Pengaruh Pertumbuhan Perusahaan, Umur Perusahaan dan Financial Distress terhadap Manajemen Laba. AKADEMIK: Jurnal Mahasiswa Ekonomi & Bisnis, 4(3), 1216-1229. doi:https://doi.org/10.37481/jmeb.v4i3.915
Siladjaja, M., & Jasman, J. (2024). The Role of Earnings Quality and Future Returns: An Illustrative Simulation of Rational Decision Model. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 1-14. doi:https://doi.org/10.1016/j.joitmc.2023.100191
Smith Jr, C. W., & Watts, R. L. (1992). The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies. Journal of financial economics, 32(3), 263-292. doi:https://doi.org/10.1016/0304-405X(92)90029-W
Sulianti, V. (2021). Analisis Pengaruh Ukuran Perusahaan, Umur Perusahaan dan Leverage terhadap Kualitas Laba pada Perusahaan Sektor Industri Barang Konsumsi di Bursa Efek Indonesia. FIN-ACC (Finance Accounting), 5(12), 1875-1885.
Syahrani, T. (2019). Pengaruh Profitabilitas, Kualitas Audit, Nilai Perusahaan, Dewan Komisaris Independen dan Ukuran Dewan Komisaris Terhadap Manajemen Laba Perusahaan Manufaktur yang Terdaftar di BEI. Jurnal Fairness, 9(1), 45-58. doi:https://doi.org/10.33369/fairness.v9i1.15221
Taofik, M. Y., Djuniardi, D., & Purnama, D. (2021). Profitabilitas dan Leverage Terhadap Praktik Perataan Laba dengan Good Corporate Governance Sebagai Variabel Moderasi. Jurnal Akuntansi Bisnis dan Ekonomi, 7(2), 1981-1998. doi:https://doi.org/10.33197/jabe.vol7.iss2.2021.775
Wulansari, Y. (2013). Pengaruh Investment Opportunity Set, Likuiditas dan Leverage Terhadap Kualitas Laba pada Perusahaan Manufaktur yang Terdaftar di BEI. Jurnal Akuntansi, 1(2), 1-33.
Published
2025-01-30
How to Cite
Widiyanti, A., Yunani, S., & Septiyanti, R. (2025, January 30). THE EFFECT OF INVESTMENT OPPORTUNITY SET, COMPANY AGE, LIQUIDITY, AND FINANCIAL LEVERAGE ON EARNINGS QUALITY. Jurnal Akuntansi Dan Keuangan (JAK), 30(1), 105-118. https://doi.org/https://doi.org/10.23960/jak.v30i1.3791
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