ANALISIS PENINGKATAN KUALITAS LABA AKIBAT HUBUNGAN POLITIK (PERUSAHAAN GO PUBLIC YANG TERDAFTAR DI BEI PERIODE 2016-2018)

The purpose of this research is to investigate how political connections and their relationships with firms can affect the earnings quality by changes in political stability in Indonesia, where a political issue is a role in many aspects of business dealings and affect the earnings quality of the firms by political activities. This research used a firm's directors and firm's commissioners who have relations with politicians and also related in government for measuring political connections. However discretionary accrual used for measuring the earnings quality. This research used a panel data estimation procedure for 384 firms listed on Indonesia Stock Exchange in the period 2016-2018 and 1152 data in total. We find that the earnings quality of politically connected firms increases significantly. This result indicates that connected firms are more motivated to improve the earnings quality so the government still looks at the firm to get more incentive