Title:
Corporate Governance Mechanisms, Financial Performance, and Earnings Quality in Indonesian State-owned Enterprises

Authors:
Erna Hidayah*, Nafisa Putri Azzahra, Indonesia

Abstract:

High-quality earnings are essential to ensure transparency and reduce information asymmetry between management and stakeholders, especially in State-Owned Enterprises (SOEs) where public accountability is an important issue. This study aims to analyze the influence of institutional ownership, independent commissioners, liquidity, leverage, and profitability on the earnings quality in SOEs listed on the Indonesia Stock Exchange 2019–2023. The sampling technique used purposive sampling and 54 observation data were obtained. The data analysis method used was multiple linear regression analysis. The results showed that institutional ownership and leverage had a positive effect on earnings quality at a significance level of 5%, while independent commissioners, liquidity, and profitability had no effect on earnings quality. This research indicates that institutional ownership is relatively more able to encourage the improvement of earnings quality than other variables. In addition, companies that have higher debt levels are generally under stricter supervision from creditors and investors so that the quality of eranings is better.

DOI: https://doi.org/10.51505/IJEBMR.2026.10608