Hubungan Kompensasi CEO terhadap Manajemen Laba: Apakah kondisi Pandemi Covid-19 ikut mempengaruhi?

The relationship between CEO compensation and earnings management has been a long research study since Healys research in 1985. In its development, there are many conditions that can affect this relationship. One of the conditions that are expected to be involved is the condition of the Covid-19 pandemic. The Covid-19 pandemic has a significant role in the economic downturn, which in turn could affect the companys profit target. Profits that do not reach the target may lead the CEOs to do earnings management. This study is aimed to determine the effect of the Covid-19 pandemic on the relationship between CEO compensation and earnings management. Earnings management is measured using discretionary accrual proxy with Modified Jones Model. The study was conducted on 217 non-financial companies listed on the Indonesia Stock Exchange (IDX) in 2019-2020. Technical analysis of the data uses panel data regression with the GRETL program. The results showed that the greater the compensation received by the CEO, the lower the level of earnings management. Not to mention, the results of this study indicate that the Covid-19 pandemic conditions weaken the negative relationship between CEO compensation and earnings management. In other words, the negative relationship between CEO compensation and earnings management is stronger in conditions before the pandemic than during the pandemic. The results of this study are expected to help shareholders in deciding the provision of compensation to the CEO in the midst of a pandemic situation