The Effect of Earning Management on Level of Stickiness Cost in Registered Consumer Goods Industry Sector Companies on the Indonesia Stock Exchange 2016-2018

Abstract

The purpose of this research is to identify whether SG&A costs are sticky and analyze whether earning management practices can reduce the level of stickiness costs. The population of this research is the consumer goods industry sector companies listed on the Indonesia Stock Exchange in 2016-2018. Samples were selected using purposive sampling technique, with a total sample used were 25 companies. The analysis model used was multiple linear regression processed using SPSS version 25. This research found that SG&A costs increased by 1.077 percent when sales increased by 1 percent. Meanwhile, when sales fell by 1 percent, SG&A costs decreased by -0.0407 percent. The results of this research also show that earning management can reduce the level of stickiness cost by upward earning management practices.