This study aims to examine the effect of supervisory mechanisms, financial distress, and external audit quality on earnings management. This study uses a sample of property, real estate, & building construction sector companies listed on the Indonesia Stock Exchange for the 2018 – 2020 period. The sampling technique used is purposive sampling. The sample used in this study amounted to 26 companies. The data analysis technique in this research is descriptive statistical test and PLS-SEM test which includes outer model test and inner model test. The software used to support data processing in this research is SmartPLS 3.3.9. The results of hypothesis testing indicate that financial distress has an effect on earnings management, while the supervisory mechanism and external audit quality have no effect on earnings management.

Anahtar Kelimeler

supervisory mechanism, financial distress, external audit quality, earnings management