Abstract:

This study aims to examine the effect of financial performance and transparency on profit distribution management with earnings management as a mediating variable in Islamic commercial banks in Indonesia. The population in this study were all Islamic Commercial Banks for 2014 - 2019, with as many as 14 Islamic commercial banks. Determination of the sample using the criteria to obtain 10 Islamic Commercial Banks. The data used is secondary data, in the form of financial statements of Islamic Commercial Banks, with data collection techniques in documentation. The analytical method used is the Structural Equation Model – Partial Least Square (SEM-PLS) method. The study results indicate that Financial Performance, Transparency affects Earnings Management Financial performance affects Profit Distribution Management, while transparency does not affect Profit Distribution Management. Profit management can mediate financial performance and transparency of Profit Distribution Management.

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