DETERMINATION OF PROFIT MANAGEMENT AND ITS IMPLICATIONS ON STOCK RETURNS ("AN EMPIRICAL INVESTIGATION OF MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE BETWEEN 2018 AND 2022")

Abstract The purpose of this study is to examine the factors that influence earnings management and how they affect stock returns for manufacturing businesses listed on the Indonesia Stock Exchange (IDX) between 2018 and 2022”, based on the findings of the model selection test, this study employs panel data regression with a random effect model (REM) approach. “The study's findings show that all independent variables significantly affect stock returns and earnings management, and that stock returns are significantly impacted by earnings management”. These results suggest that investors may take earnings management strategies into account when choosing which investments to make. The study's ramifications help investors evaluate financial data before making an investment and firm managers handle financial reports. Furthermore, authorities might use the study's findings as a guide when creating more open regulations to boost investor trust in the Indonesian capital market.