The Effect of Real Earnings Management, Institutional Ownership, and Other Factors on Firm Value in Indonesia

Abstract

This study aims to obtain empirical evidence on the effect of institutional ownership, audit committee, real earnings management, profitability, liquidity, firm size, tax avoidance, and independent board of commissioners on firm value. The sample consists of 108 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2022 to 2024, resulting in 324 observations. Using a quantitative approach with purposive sampling and multiple regression analysis, the results show that profitability and the independent board of commissioners have a positive effect on firm value, while real earnings management and liquidity have a negative effect. Meanwhile, institutional ownership, audit committee, firm size, and tax avoidance have no effect on firm value.