How Does Comprehensive Income Affect Earnings Management In The Financial Sector?

This study seeks to evaluate the impact of disclosing comprehensive income, including net income and other comprehensive income, on financial sector companies listed on the Indonesia Stock Exchange from 2019 to 2023. Employing a quantitative descriptive methodology to analyze up to 62 samples of organizations selected through purposive sampling techniques. SmartPLS is utilized to execute the PLS approach, employing the inner model and hypothesis testing. The analytical results indicate that net income does not significantly influence earnings management within the banking sector listed on the Indonesian Stock Exchange; in this context, net income as a predictor of earnings management appears to be constrained to certain circumstances. Conversely, other comprehensive income substantially influences earnings management within the financial industry listed on the Indonesian Stock Exchange. Enhancing the openness of OCI reporting can mitigate excessive profits management tactics.