Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


CEO Overconfidence, Audit Firm Size, Real Earnings Management and Audit Opinion

Author(s): Paulina Sutrisno

This study aims to test the direct or indirect relationship between CEO overconfidence, audit firm size, real earnings management to audit opinion. The sample used in this study is a manufacturing company listed on the Indonesia Stock Exchange in the period 2014-2016. This research testing uses multiple linear regression and logistic regression. The results of this study indicate that CEO overconfidence has a positive effect on real earnings management, while real earnings management has no effect on audit opinion. In addition, this study also shows that the audit firm size has no effect on the relationship between CEO overconfidence and real earnings management. However, this study shows that CEO overconfidence has a negative effect on audit opinion. This study also shows that real earnings management does not mediate the relationship between CEO overconfidence and audit opinion.