THE INFLUENCE OF FIRM SIZE ON FINANCIAL PERFORMANCE WITHEARNINGS MANAGEMENT AS AN INTERVENING VARIABLE

Abstract

This study uses a quantitative approach to analyze the impact of company size on financial performance. Furthermore, earnings management serves as an intervening variable. This study focuses on manufacturing companies in the food and beverage subsector listed on the Indonesia Stock Exchange (IDX) from 2022 to 2024. The data used is secondary, obtained from the companies' annual reports. The research sample consisted of 23 companies selected using a purposive sampling method. Several techniques were used to analyze the data, including descriptive statistical analysis, classical assumption testing, partial hypothesis testing, coefficient of determination analysis, and path regression. The partial test results indicate that company size and earnings management have a significant influence on financial performance. Furthermore, company size, through earnings management, has also been shown to significantly impact financial performance. However, company size does not significantly influence earnings management practices.