The Influence of Good Corporate Governance Mechanisms, Firm size, and Profitability on Earnings Management

This study explores the influence of Good Corporate Governance (GCG), profitability, and company size on profit management practices in banking companies listed on the Indonesia Stock Exchange. Using a quantitative approach, the research analyzes secondary data from the financial statements of 40 banking companies from 2019 to 2023. The findings show that company size significantly affects profit management, while GCG and profitability do not significantly impact. Due to increased oversight and regulatory pressure, larger companies tend to engage less in profit manipulation. These results highlight the need for stronger governance mechanisms, particularly enhancing the role of independent commissioners, and further emphasize the importance of maintaining transparency in financial reporting. The study contributes to understanding the dynamics of profit management in the banking sector and offers practical insights for improving corporate governance.