Abstract
This reseach is examine the effect of earning power, managerial ability, and employee stock ownership program on the real earnings management. Sampled used in this reseach are manufacturing companies listed in Indonesia Stock Exchange (IDX) period of 2010-2014. The method of analysis is using multiple regression model. The results indicate that: (1) earning power has a positive effect on real earnings management based on abnormal cash flow operating and abnormal discretionary expense but has no effect on real earnings management based on abnormal production expense. (2) managerial ability has negative effect and not significant on real earnings management based on abnormal cash flow operating, abnormal production expense and abnormal discretionery expense. (3) employee stock ownership program has no effect on real earnings management based on abnormal cash flow operating, abnormal production expense, and abnormal discretioneryexpense.
Keywords : Earning Power, Managerial Ability, Employee Stock Ownership Program, Real Earnings Management