The Effect of Company Characteristics and Audit Committee Composition on Earning Management: Empirical Study of Indonesian Companies in the Food and Beverages Sector

The purpose of this research was to analyze the effect of Financial Leverage, Sales Growth, Firm Size, and Audit Committee Composition on earnings management in the Food and Beverages sub-sector in Indonesia, an empirical study using a panel data approach. This research used panel data for the period 2018 – 2022, obtained from the financial report and annual reports of 19 FnB companies listed on the Indonesia Stock Exchange (IDX). The sample used in this research was determined by the purposive sampling method and resulted in 95 research samples. This research used the Common Effect Model (CEM) panel data regression analysis, with the following research results (1) Sales Growth has a negative and significant effect on Earnings Management, (2) Financial Leverage has no effect on Earnings Management, (3) Firm Size has a negative and significant effect on Earnings Management, and (4) Audit Committee Composition has no effect on Earnings Management.