The Influence of Voluntary Disclosure, Institutional Ownership and Managerial Ownership on The Earnings Quality

This study examines the effect of voluntary disclosure, institutional ownership, and managerial ownership on earnings quality in Basic Industry and Chemical companies listed on the Indonesia Stock Exchange (IDX). The data used is secondary data with multiple linear regression analysis. The population consists of 73 companies, with a sample of 20 companies using purposive sampling. The results indicate that voluntary disclosure has a positive but insignificant effect on earnings quality, suggesting increased voluntary disclosure tends to improve earnings quality. Institutional ownership has a negative and significant effect on earnings quality, playing an important role in minimizing agency conflicts. Managerial ownership has a negative and insignificant effect on earnings quality, with small management shareholding reassuring owners about reported earnings quality. The F-test results show voluntary disclosure, institutional ownership, and managerial ownership simultaneously have a significant effect on earnings quality. The independent variables influence earnings quality, with institutional ownership being the only significant variable during the observation period. Other variables influencing earnings quality, such as profitability, profit persistence, capital structure, and internal and external auditor quality, are not considered. This study is expected to serve as an additional reference for investors.