The Effect of Solvability, Liquidity, Profitability, and the Audit Committee on Earnings Quality

In a company, one of the most important parts of financial reports that investors pay attention to is information about profits. Profit data is used to entice investors to buy company shares so that the company can raise money for its business operations.So, this study aims to examine the effect of solvability, liquidity, profit-bearings quality in manufacturing listed on the Indonesia Stock Exchange in 2018-2020. This research uses quantitative companies research methods with secondary data obtained from www.idx.co.id. The number of samples obtained by purposive sampling method is 87 companies as research with 223 observations. The data analysis technique used was multiple linear regression analysis with the SPSS 23 software program. The results showed that solvency, liquidity, profitability had an effect on financial distress, while the audit committee variables had noeffect.