Earnings management is an important thing to that affects financial report as a base of decision making. This research aims to analyze the effect of audit quality, leverage, and managerial ownership on earnings management and how it affected the quality of financial report.This research use 267 data samples from manufacturing company listed in Indonesia Stock Exchange year 2015 – 2017. The methods of analysis use for the study are descriptive statistic method and multiple linear regression analysis method. The result of this research shows that audit quality has positive effect on earnings management, leverage has no effect on earning management, and managerial ownership has no effect onearnings management.

This study aims to examine whether the attributes of the quality of accounting information reflect the qualitative characteristics of financial statements and examine the effect of the quality of accounting information on investment efficiency. The attributes of the quality of accounting information are predictability, discretionary revenue, discretionary accruals. Investment efficiency is measured by investment inefficiency as underinvestment and overinvestment. The sample was a manufacturing companies listed on the Indonesia Stock Exchange in 2012 until 2015 as many as 493 observations for examine the attributes of the accounting information quality to form factors that reflect the quality of the financial statements. While the sample of 479 observations used to test the influence of the quality of accounting information against underinvestment. Observation of overinvestment was not analyzed in this study because it has only 14 observations. Data analysis technique used is factor analysis and multiple linear regression. The results showed that the three attributes of the accounting information quality form two factors, the first factor called predictability and the second factor is called discretion. Both of these factors reflect the qualitative characteristics of the accounting information. However, the quality of accounting information measured by these two factors has no significant effect on underinvestment. Likewise, the operating cycle, ROA, and age have no effect on underinvestment. Meanwhile, firm size, tangibility, and dummy loss have a significant effect on underinvestment.