Analysis of Opportunistic Behavior, Monitoring Mechanisms and Financial Distress on Earnings Management: Evidence from Indonesia

This study aims to examine the relationship between opportunistic behavior, monitoring mechanisms, and financial distress on earnings management. The population of this is 796 companies listed in Indonesia Stock Exchange year 2015-2019. Fourty three sample were selected using purposive sampling method, resulting 215 firm-year observation data. Using ordinary least square (OLS) regression as main data analysis, observed that mechanism variable proxied by leverage has a positive effect However, there no correlation behavior free cash flow profitability well Altman Z-Score A robustness test additional samples during COVID-19 pandemic was carried out. provides evidence results study's are robust. contributes empirically literature proxies, mechanisms leverage, distress, It also valuable information for stakeholders observe quality firm’s statements.