EARNINGS MANAGEMENT AS A BASIS OF CORPORATE VALUE MODEL IN AUTOMOTIVE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE
This study is intended to analyze and answer the research gap that occurs among researchers and the phenomenon that occurs where Firm value is a problem that needs to be researched using Earnings Management (DCA) as an intervening variable. This study is a type of quantitative research with a multiple regression analysis method of panel data with the object of research being automotive sector companies listed on the Indonesia Stock Exchange. By using the purposive sampling method, a cross section of fifteen companies was obtained as observations, in addition, this study also uses a time series for 5 years. Furthermore, the results of this study are expected to produce maximization of Firm value through DCA. The approach used in this study is to use two research models that are integrated into one and each goes through the stages of model selection testing, namely the Chow Test, the Hausman Test. The results of the study on the first model using the endogenous DCA variable, in addition to the interest rate variable, all exogenous variables can explain their influence significantly on DCA with the highest level of sensitivity in the Firm Size variable. The results of the second model study using Firm value as an endogenous variable are that in addition to Leverage (DAR) and Interest Rate (SB), all exogenous variables can explain their influence significantly on Firm value (Q) with the highest sensitivity level in the Earnings Management variable. These results are expected to help as a guideline for capital market players to be able to get investment in companies that are able to maximize Firm value.
Firm Value, Earnings Management, Firm Size, Leverage, Exchange Rate, Interest Rate.