THE INFLUENCE OF INTELLECTUAL CAPITAL AND FINANCIAL PERFORMANCE ON EARNINGS MANAGEMENT WITH FIRM SIZE AS A MODERATING VARIABLE (A CASE STUDY AT PT. BANK MANDIRI (PERSERO) TBK. FOR THE PERIOD 2019-2023)

Abstract

This study investigates earnings management practices at PT Bank Mandiri (Persero) Tbk. from 2019 to 2023 by examining the impact of intellectual capital and financial performance, moderated by firm size. The objective of this research is to investigate the impact of intellectual capital and financial performance on earnings management practices, as well as assess whether firm size directly impacts earnings management or moderates these relationships. Using a descriptive quantitative approach with a case study design, the analysis was conducted through SPSS software employing Moderated Regression Analysis (MRA). The results demonstrate that both intellectual capital and financial performance significantly affect earnings management. However, firm size does not have a direct effect; instead, it serves functioning as a moderator that diminishes the influence of intellectual capital and financial performance on earnings management. These findings suggest that larger firms may have more established governance mechanisms, which limit the extent of earnings manipulation driven by internal corporate factors.