THE EFFECT OF MANAGERIAL OWNERSHIP ON EARNINGS MANAGEMENT OF ACQUIRERS ON THE INDONESIAN STOCK EXCHANGE

ABSTRACT: In this globalization era, there are so many types of businesses that can be developed both inlarge and small businesses. So many business ideas have also emerged that can be used to develop business.One of the strategies is by combining several businesses, it is hoped that these companies can increase marketshare, diversify businesses, or increase vertical integration of existing operational activities. The ipurpose ofthis study is to provide empiricali evidence of earnings management by increasing the amount of earnings ofthe acquirer’s company reports before the implementation of mergers and acquisitions for payments throughshares. The purposeiof this iistudy iis to obtain empirical evidence of the effect of managerial ownership onearnings management before mergers and acquisitions. This researchi was conducted on companies listed onthe IDX and companies that made mergers and acquisitions from 2016-2019 and payment through shares.Samples obtained as many as 30 companies using purposive sampling techniques. The data collection methoduses non-participant observation methods. This study uses independent sample T test and simple regressionanalysis technique. This study shows that there is earnings management of the acquiring company beforeconducting mergers and acquisitions by increasing report earnings and managerial ownershipi has apositiveiieffect on iearningsi managementii..

KEYWORDS: managerial ownership, earning management and acquisition