Influence of Financial Performance, Board Size, and Audit Committee on Sharia Profit Management

Andi Sintia Yulianto; Christimulia Purnama  Trimurti; I Gusti Bagus Rai  Utama; I Wayan Ruspendi  Junaedi

doi:10.37899/journal-la-sociale.v6i2.1794

Andi Sintia Yulianto Master of Management Program, Faculty of Business, Tourism, Education and Humanities, Dhyana Pura University, JI. Raya Padang Luwih Tegaljaya Dalung North Kuta, Bali, Indonesia
Christimulia Purnama Trimurti Master of Management Program, Faculty of Business, Tourism, Education and Humanities, Dhyana Pura University, JI. Raya Padang Luwih Tegaljaya Dalung North Kuta, Bali, Indonesia
I Gusti Bagus Rai Utama Master of Management Program, Faculty of Business, Tourism, Education and Humanities, Dhyana Pura University, JI. Raya Padang Luwih Tegaljaya Dalung North Kuta, Bali, Indonesia
I Wayan Ruspendi Junaedi Master of Management Program, Faculty of Business, Tourism, Education and Humanities, Dhyana Pura University, JI. Raya Padang Luwih Tegaljaya Dalung North Kuta, Bali, Indonesia

DOI: https://doi.org/10.37899/journal-la-sociale.v6i2.1794

Keywords: Financial Performance, Board Size, Sharia Profit Management, Audit Committee

Abstract

Investment interest in the Indonesian capital market continues to experience significant growth, reaching 9,540,027 investors in August 2022, an increase compared to the previous year. Data shows that Indonesia's stock market capitalization ranks 27th in the world with a value reaching 9,300 trillion in the same year. The growth of the stock market is also reflected in the increase in the Jakarta Composite Index (IHSG) by 5.02% and the Indonesian Sharia Stock Index (ISSI) which grew by 6.02% in June 2022. The study utilizes a quantitative approach, analyzing data from Sharia companies listed on the Jakarta Islamic Index (JII) over the period 2021-2023. Findings reveal that financial performance significantly influences earnings management, with larger board sizes showing a smaller positive impact, while larger audit committees have a negative impact on earnings management.

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