The Influence of Prudence, Income Smoothing and Capital Structure on Earnings Quality

The purpose of this study is to examine the effect of Prudence, Income Smoothing and Capital Structure on Earnings Quality, by taking the research population from Consumer Non-Cyclicals sector companies listed on the Indonesia Stock Exchange during the period from 2018 to 2022. The data used is secondary data, namely the company's annual reports. The sample in this study was obtained using a purposive sampling technique, where samples were selected based on predetermined criteria. Based on this purposive sampling method, 36 samples of Consumer Non-Cyclicals companies listed on the Indonesia Stock Exchange during the period from 2018 to 2022 were obtained. The analysis method used is panel data regression analysis using the Eviews9 program. The results of this study indicate that Prudence, Income Smoothing, and capital structure simultaneously affect earnings quality. The partial results show that Prudence affects earnings quality, while Income Smoothing and capital structure do not affect earnings quality.