The Impact of Accounting Conservatism and Profitability on Earnings Quality: The Moderating Role of Firm Size

Earnings quality refers to a company’s financial statements that reflect its financial performance derived from operational activities. It serves as a fundamental reference for evaluating company performance, assessing management effectiveness, and guiding investors in their decisions regarding the company's future.
This particular research endeavor seeks to investigate the connection or correlation accounting conservatism plus profitability on earnings integrity, including firm size acting in the capacity of a moderating factor. This research of a quantitative nature. This research was carried out among energy sector companies listed on the Indonesia Stock Exchange (IDX) from 2021 until 2023, utilizing intentional sampling for selecting the sample was performed employing models of multiple linear regression using moderated regression analysis (MRA), tested with the software IBM SPSS Statistics 26. The findings reveal that accounting conservatism impacts earnings quality, while profitability does not impact the quality of earnings, and firm size does not moderate the connection in the midst of accounting conservatism and profitability regarding earning quality. This situation research could be more intriguing if it included other companies, allowing for a broader and more diverse data set, which would enable the consideration of additional factors that may influence earnings quality, such as capital structure and dividend policy.