The Effect of Intellectual Capital on Earnings Management and Earnings Quality of Banking Companies in Indonesia
This study aims to determine the influence of human capital, employed capital, and structural capital on earnings management and to determine the influence of human capital, employed capital, and structural capital on the quality of profits of banking companies in Indonesia. The research conducted included the type of quantitative research and the population in this study was all banking companies listed on the Indonesia Stock Exchange from 2016-2021. This research data collection technique uses literature studies and field research. This study uses independent variables consisting of human capital, capital employed, and structural capital. For dependent variables used consist of earnings management and earning quality. The conclusion of this study is that intellectual capital variables (human capital, employed, structural capital) affect earnings managements. Meanwhile, intellectual capital (human capital and structural capital) affects earnings quality and intellectual capital (capital employed) does not affect earnings quality. In addition, the results of this study are also a new criticism of a person’s ego that can encourage deviant behavior, such as financial statement fraud, especially earnings management in Indonesia.
Keywords: human capital; capital employed; structural capital; earnings management; earnings quality; banking companies