Analysis of Leverage, Good Corporate Governance and Earnings Growth on Earnings Quality in Indexed Companies Jakarta Islamic Index (JII)

Abstract

This study is entitled analysis of leverage, good corporate governance, and earnings growth on earnings quality in companies listed on the IDX indexed     by     the     Jakarta      Islamic      Index. The purpose of this study was to determine the partial and simultaneous effects of leverage, good corporate governance, and earnings growth on earnings quality. The population of this study: companies listed on the IDX, indexed JII, research sample: financial statements for 2018-2020. Sampling using purposive sampling method with certain criteria: the company is listed on the IDX, the company has earned three consecutive years of profit and the financial statements are published in full, so that a total sample of      30       company       data       is       obtained. Data analysis using linear regression analysis method, classical assumption test and hypothesis testing t test and F test.

The results showed that leverage has no effect on earnings quality, good corporate governance, and earnings growth have a significant and positive effect on earnings quality, as well as the results of simultaneous tests that have a significant effect on earnings quality.

The conclusion that all variables affect earnings quality except leverage has no effect on earnings quality.