Profitabilitas dan Manajemen Laba selama Pandemi Covid-19: Studi Kasus pada Bank di Indonesia

This research investigates the relationship between profitability and earnings management in Indonesian banks listed on the Indonesia Stock Exchange (IDX) during the Covid-19 pandemic. This article contributes to a novelty by exploring opportunistic behavior during global crisis phenomenon. We use Return on Asset (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) as profitability index and Discretionary Accruals (DACC) as earnings management index. The result of this research can be used to elaborate investment decisions making, especially during economic crisis. We collect financial reports of 2020 and 2021 from the Indonesian Stock Exchange (IDX) and get the final data as much as 40 firm year observations.. The result of regression linear analysis using modified jones model shows that all proxies for profitability (ROA, ROE, and NPM) do not have a significant effect on earnings management. These findings indicate that management tendency to manage earnings during a pandemic is not based on profitability intentions, but rather on the desire to survive in the crisis.