An analysis of factors that affect earnings quality on Islamic commercial banks: The case at Indonesia and Malaysia

Abstract

This research aims to determine the impact of leverage, liquidity, and profitability; examine company size as a moderating element; and compare earnings quality at Indonesian and Malaysian Islamic commercial banks. This study's subjects were Indonesian and Malaysian Islamic commercial banks, with a sample size of ten Indonesian Islamic commercial banks and fourteen Malaysian Islamic commercial banks from 2016-2020. The regression approach was employed in this investigation. According to the findings of this study, leverage does not affect earnings quality; liquidity hurts earnings quality; profitability does not affect earnings quality; company size is unable to moderate the relationship of leverage to earnings quality; company size is unable to moderate the relationship of liquidity to earnings quality; company size is unable to moderate the relationship between profitability and earnings quality; Leverage, liquidity and profitability simultaneously have no effect on earnings quality at Indonesian Islamic commercial banks, but simultaneously affect Malaysian Islamic commercial banks; and there is no difference in earnings quality at Indonesian and Malaysian Islamic commercial bank.

Introduction
Islam not only regulates vertical worship to Allah SWT (hablum minallah), but also horizontally to fellow human beings (hablum minannas). Islam also regulates the daily activities of human beings described in the Qur'an and Hadith, including transactions or business activities (Hendra, 2018). We know that Islamic commercial banks add a new era to Previous research on the factors that affect earnings quality gives mixed results, where there is a direct influence of leverage on earnings quality (Imad et al., 2017;Purnamasari & Fachrurrozie, 2020;Ramadan, 2015;Risdawaty & Subowo, 2015;Warrad, 2017). However, in other studies, leverage does not contribute to earnings quality (Nadirsyah & Muharram, 2016;Soly & Wijaya, 2018;Hasanuddin et al., 2021). Likewise, liquidity also gives mixed results on earnings quality (Hasanuddin et al., 2021), but on the other hand, liquidity did not affect earnings quality (Herninta & Ginting, 2020). Furthermore, profitability, as proxied by return on assets (ROA), has no effect on earnings quality at commercial banks in Iraq (Imad et al., 2017), but in other studies, there is a partially significant effect of profitability on earnings quality (Herninta & Ginting, 2020;Purnamasari & Fachrurrozie, 2020;Risdawaty & Subowo, 2015;Warrad, 2017;Roy & Shijin, 2019). Hence, mixed results are prevalent for this study area, heavily influenced by the country's factors.
This study is intriguing since prior research on Islamic commercial banks has been limited, the research outcomes have been contradictory, and the novelty of this study includes company size as a moderating component. Whereas the size of the company is thought to be able to moderate the relationship of leverage, liquidity, and profitability to earnings quality; because the more significant the company, the greater a company's business continuity in improving financial performance, so companies do not need to practise earnings manipulation which will result in a decrease in earnings quality and this study also compares the earnings quality of Islamic commercial banks in two countries, namely Indonesia and Malaysia (Irawati, 2012). Thus, this study aims to provide empirical evidence of the effect of leverage, liquidity, and profitability partially and simultaneously on earnings quality at Indonesian and Malaysian Islamic commercial banks and to analyze company size as a moderating variable. This study will also compare earnings quality at Indonesian Islamic commercial banks and in Malaysia.

Agency Theory
In signalling theory, an action will produce a reaction. Included in this are stakeholder reactions related to financial conditions. Signalling financial statements is an action taken by company management that provides instructions for investors about the future management of the company's prospects (Ullah, 2020). Agency theory is a working relationship between the principal (owner) and agent (manager). As an agent, it is morally responsible for optimizing the principal's profits. However, on the other hand, agents are also interested in maximizing their welfare. Therefore, it is very likely that the agent only sometimes acts in the principal's best interest, giving rise to an agency problem (Jensen & Meckling, 1976).
The relationship between agency theory and the earnings quality variable is a relationship that cannot be separated from agency conflict. When the owner (principal) gives decision-making authority to management (agent); as a result, management has more information than the owner (Adimulya et al., 2021). Conflicts of interest between the owner (principal) and management (agent) occur due to the lack of maximum utility between them (Rohmaniyah & Khanifah, 2018). This conflict leads to the nature of management reporting earnings opportunistically for its own sake, leading to low earnings quality (Herninta & Ginting, 2020).

Leverage
Leverage from debt and equity financing will result in various obligations for the organisation (Frank J & Pamela P, 2003) and the use of leverage by a company can increase risk and potential returns (Subramanyam & Wild, 2009). The debt measures the leverage variable to Equity Ratio (DER). Debt to equity ratio (DER) is a ratio that measures the relative proportion of total liabilities to the equity of common stock used to finance company assets. As with the debt ratio, the higher this ratio, the greater the use of the company's financial leverage (Gitman & Zutter, 2015).
Companies with high debt can use their debt to fund their company's operations so that they can generate large profits and pay off the debt from the profits generated (Risdawaty & Subowo, 2015). Based on previous research, it is also known that the relationship between leverage positively affects earnings quality (Warianto & Rusiti, 2014;Imad et al., 2017;Kurniawan & Suryaningsih, 2017;Hakim & Naelufar, 2020). So, the hypothesis proposed in this study is as follows: H1: Leverage positively affects earnings quality at Indonesian Islamic commercial banks. H2: Leverage positively affects earnings quality at Malaysian Islamic commercial banks.

Liquidity
Liquidity is the ability of a company to meet its short-term debts or obligations. High liquidity shows good company performance because it can pay its short-term debt using current assets without using funds from (external) loans (Herninta & Ginting, 2020). The liquidity variable is measured by the current ratio (CR). The current ratio (CR) measures the company's ability to meet its short-term obligations. The current ratio (CR) formula is current assets divided by current liabilities, where a higher current ratio (CR) indicates a higher level of liquidity (Gitman & Zutter, 2015;Al Nimer et al., 2015). The liquidity of a company that is too large also indicates that it needs to be able to manage its current assets as much as possible, which makes financial performance unsuitable. It can be manipulated to present earnings information (Irawati, 2012). Based on previous research, it is also known that the relationship between liquidity hurts earnings quality (Warianto & Rusiti, 2014;Gharezi & Zadeh, 2013;Ananda & Ningsih, 2016;BR Setiawan, 2017;Marpaung, 2019). So, the hypothesis proposed in this study is as follows: H3: Liquidity has a negative effect on earnings quality at Indonesian Islamic commercial banks. H4: Liquidity has a negative effect on earnings quality at Malaysian Islamic commercial banks.

Profitability
Profitability results from management efforts towards funds invested by owners and investors (Pattiruhu & Paais, 2020). Profitability is the company's ability to generate profits in its operational activities, which is the main focus in evaluating company performance because company profits are an indicator of company value creation that shows the company's prospects in the future (Herninta & Ginting, 2020). Return prorates the profitability measurement in this study on Assets (ROA). ROA is a ratio that measures the overall effectiveness of management in generating profits with available assets. It will be better if the company's return on total assets is higher (Gitman & Zutter, 2015;Aqil et al., 2019). Companies that have high profitability will reflect efficient and optimal operational results. Thus the quality of the profit generated will show good results (Kepramareni et al., 2021). Based on previous research, it is also known that the relationship between profitability positively affects earnings quality (Heikal et al., 2014;Kurniawan & Suryaningsih, 2017;Purnamasari & Fachrurrozie, 2020;Herninta & Ginting, 2020). So, the hypothesis proposed in this study is as follows: H5: Profitability has a positive effect on earnings quality at Indonesian Islamic commercial banks. H6: Profitability has a positive effect on earnings quality at Malaysian Islamic commercial banks.

Company Size
Company size is a determining factor in generating profits; investors usually have more confidence in large companies with large amounts of assets because large companies are considered capable of continuously improving their company performance and always striving to increase earnings quality (Tangngisalu et al., 2020). Company size is a scale that classifies the size of a company in various ways, including expressed in total assets, total sales, and stock market value, where company size is divided into three categories, i.e., large companies, medium companies, and small company (Kimsen et al., 2019). In this study, the company size variable (Cs) was measured by the natural log of total assets. Natural log total assets minimise data with excessive fluctuations (Setiawan & Mahardika, 2019). The company's financial performance is the company's ability or achievement in running its business which is financially designated in the financial statements (Irawati, 2012); whereas in this study, the financial performance consists of solvency ratio, namely leverage as measured by Debt to Equity (DER), liquidity ratio which is namely the Current Ratio (CR), and the profitability ratio as measured by Return on Assets (ROA), so that company size is thought to be able to moderate the relationship of leverage, liquidity, and profitability to earnings quality. The bigger the company, the higher the business continuity of a company in improving financial performance so that the company does not need to practice profit manipulation (Adur et al., 2019), which will decrease earnings quality. Based on this description, the proposed hypothesis is as follows: H7: Leverage positively affects earnings quality at Indonesian Islamic commercial banks moderated by company size. H8: Leverage positively affects earnings quality at Malaysian Islamic commercial banks moderated by company size. H9: Liquidity affects earnings quality at Indonesian Islamic commercial banks moderated by company size. H10: Liquidity affects earnings quality at Malaysian Islamic commercial banks moderated by company size. H11: Profitability affects earnings quality at Indonesian Islamic commercial banks moderated by company size. H12: Profitability affects earnings quality at Malaysian Islamic commercial banks moderated by company size.

The Influence of Leverage, Liquidity and Profitability Simultaneously on Earnings Quality
The results of previous studies note that leverage, profitability, company size and information asymmetry affect earnings quality (Risdawaty & Subowo, 2015). Leverage and profitability simultaneously affect earnings quality (Warrad, 2017). Accounting conservatism, debt-to-total assets ratio, liquidity, profitability, and company size to earnings quality simultaneously and significantly affect earnings quality (Kurniawan & Suryaningsih, 2017). Based on this, this study also tries to test and analyse some previous variables so that the proposed hypothesis is as follows: H13: Leverage, liquidity and profitability simultaneously affect earnings quality at Indonesian Islamic commercial banks.
H14: Leverage, liquidity and profitability affect the quality of earnings at Malaysian Islamic banks.

The Difference in Earnings Quality at Indonesian and Malaysian Islamic Commercial Banks
The high quality of financial information stems from the high quality of financial reporting (Alarussi & Alhaderi, 2015). Earnings quality is profit that can be used to accurately assess current performance and be used as a basis for predicting future performance (Wahlen et al., 2015). Earnings are of high quality if users of financial statements can use the reported earnings to make the best decisions and meet the qualitative characteristics of financial statements, namely relevance and reliability (Warianto & Rusiti, 2014). Earnings quality is an indicator of the ability of disclosed earnings that can predict future cash flows more accurately. When earnings quality declines mean that it cannot more accurately predict future cash flows because if reported earnings are managed, then predictions of future cash flow depending on the number of earnings that are disclosed incorrectly will also be wrong (Qamar et al., 2015;Warrad, 2017;Prayoga & Kristianti, 2020).
Earnings quality is an essential part of processing and interpreting information. Highquality profit figures will reflect current operating performance, be a good indicator of future operating performance, and fairly describe the company's intrinsic value (Schipper & Vincent, 2003). In this study, earnings quality was measured by the Modified Jones Model. It is an improvement to the original Jones Model. This modification is designed to eliminate the possibility of the Jones Model conjecture to measure discretionary accruals with errors when management discretion is exercised on earnings (Dechow et al., 1995).
Earnings quality is an indicator of the ability of disclosed earnings to predict future cash flows more accurately (Warrad, 2017). Earnings are of high quality if users of financial statements can use the reported earnings to make informed decisions and meet the qualitative characteristics of financial statements, namely relevant and reliable (Warianto & Rusiti, 2014). Therefore, this study will also test and analyse the differences in earnings quality in Indonesia and Malaysia, so the hypothesis proposed is as follows: H15: It is suspected that there are differences in earnings quality at Indonesian and Malaysian Islamic Commercial Banks.

Methodology
This study uses a quantitative research approach focusing on leverage, liquidity, and profitability as independent variables, company size as a moderating variable, and earnings quality as the dependent variable. The sampling method used is purposive sampling. The final sample in this study was 24 (twenty-four) Islamic Commercial Banks, with details of 10 (ten) Indonesian Islamic commercial banks and 14 (fourteen) Malaysian Islamic commercial banks from 2016-2020. The main selection criteria for the banks are length or duration of operation and assets. The following is a sample that matches the sample selection criteria.
The following samples in the study are presented in Table 2. The data analysis used in this study was moderated regression analysis (MRA) and difference T-test.

Multiple Linear Regression Test Results
Multiple linear regression test was used to test the model of the influence and relationship of independent variables with more than two variables on the dependent variable, using multiple linear regression method (I. Ghozali, 2018). The following are the results of the multiple regression test at Indonesian and Malaysian Islamic commercial banks to test hypothesis 1 to hypothesis 6, which are presented in Table 3. Based on the study's results, it was found that leverage, as proxied by debt equity ratio (DER), does not affect earnings quality. It showed that the coefficient of DER has a negative value of 0.013 and a significance value of 0.244. It means that the significance value is more significant than 0.05. Hence, hypothesis one (H1) is rejected. Leverage does not affect the quality of earnings at the Indonesian Islamic Bank.
Meanwhile, the coefficient of DER has a negative value of 0.010 and a significance value of 0.057. It means that the significance value is more significant than 0.05, so hypothesis two (H2) was rejected. Leverage does not affect the quality of earnings at the Malaysian Islamic Bank.
Based on the study's results, it was found that liquidity, as proxied by the current ratio (CR), hurts earnings quality. The regression coefficient of CR has a negative value of 0.019 and a significance value of 0.032. The significance value is less than 0.05, so hypothesis three (H3) is accepted. On the other side, the regression coefficient of CR also has a negative value of 0.049 and a significance value of 0.003. The significance value is smaller than 0.05, so hypothesis four (H4) is accepted. Liquidity negatively affects earnings quality in the Indonesian Islamic Bank. Liquidity affects earnings quality negatively at Malaysian Islamic Commercial Banks.
Based on the study's results, it was found that profitability, as proxied by return on assets (ROA), does not affect earnings quality. The regression coefficient of ROA has a negative value of 0.173 and a significance value of 0.714. The significance value is more significant than 0.05, so hypothesis five (H5) is rejected. Meanwhile, the regression coefficient of ROA has a negative value of 0.130 and a value of significance of 0.793. The significance value is more significant than 0.05, so hypothesis six (H6) is rejected. Profitability has no effect on earnings quality in the Indonesian Islamic Commercial Bank. Profitability also has no effect on earnings quality at Malaysian Islamic Commercial Banks.

Moderated Regression Analysis (MRA) Test Results
To find out whether the moderating variable will strengthen or weaken the relationship between the independent variable and the dependent variable, namely leverage (DER), liquidity (CR), and profitability (ROA) on earnings quality with company size (CS) as a moderating variable at Indonesian and Malaysia Islamic Banks, following are the results of the moderated regression analysis of Indonesian and Malaysia Islamic Commercial Banks to test hypothesis 7 to hypothesis 12 which are presented in Table 4. Based on the study's results, it was found that company size at Islamic commercial banks in Indonesia and Malaysia could not moderate the relationship between leverage and earnings quality. The regression coefficient value for the moderating variable (DER_CS) is negative at 0.002, with a significance value of 0.729. It means the significance value is more significant than 0.05, so hypothesis seven (H7) is rejected. The company size cannot moderate the leverage relationship on earnings quality at Indonesian Islamic Commercial Banks. In comparison, the regression coefficient value for the moderating variable (DER_CS) is negative at 0.007, with a significance value of 0.222. It means the significance value is more significant than 0.05, so hypothesis eight (H8) is rejected. The company size cannot moderate the relationship leverage on earnings quality at Malaysian Islamic Commercial Banks.
Based on the study's results, it was found that company size at Islamic commercial banks in Indonesia and Malaysia could not moderate the relationship between liquidity and earnings quality. The regression coefficient value for the moderating variable (CR_CS) is negative at 0.004, with a significance value of 0.289. The significance value is more significant than 0.05, so hypothesis nine (H9) is rejected. The size of the company cannot moderate the relationship between liquidity on earnings quality at Indonesian Islamic Commercial Banks. On another side, the regression coefficient value for the moderating variable (CR_CS) is negative at 0.078, with a significance value of 0.127. It means the significance value is more significant than 0.05. Hence, hypothesis ten (H10) is rejected. The company size cannot moderate the relationship between liquidity and earnings quality at Malaysian Islamic Commercial Banks.
Based on the study's results, it was found that company size at Islamic commercial banks in Indonesia and Malaysia could not moderate the relationship between profitability and earnings quality. The company size cannot moderate the relationship profitability on earnings quality at Malaysian Islamic Commercial Banks. The regression coefficient value for moderating variable (ROA_CS) has a positive value of 0.485 and a significance value of 0.286. That is, the significance value is more significant than 0.05, so hypothesis eleven (H11) is rejected, i.e., the size of the company cannot moderate the relationship between profitability and earnings quality at Islamic Commercial Banks Indonesia. The regression coefficient value for moderating variable (ROA_CS) has a negative value of 3.027 and a significance value of 0.121. The significance value is more significant than 0.05, so the twelve hypotheses (H12) are rejected.

Simultaneous Parameter Significance Test (F-test) Test
The F-test also shows whether all the independent variables included in the model affect the dependent variable together (I. Ghozali, 2018). The results of the F statistical test of Indonesian and Malaysia Islamic Commercial Banks to test hypothesis 13 to hypothesis 14 are presented in Table 5. Based on the study's results, it was found that leverage, liquidity and profitability have no simultaneous effect on earnings quality at Indonesian Islamic Banks. The value of the regression coefficient of the F-test is 1.932 and with a significance value of 0.138. The significance value is more significant than 0.05, so the thirteenth hypothesis (H13) is rejected. Leverage, liquidity, and profitability do not simultaneously affect the quality of earnings at the Indonesia Islamic Commercial Banks.
Meanwhile, Malaysian Islamic Commercial Banks get different results, where leverage, liquidity and profitability simultaneously affect earnings quality. The value of the regression coefficient of the F-test is 3.511 and with a significance value of 0.020. The significance value is more significant than 0.05, so the fourteenth hypothesis (H14) is accepted. Leverage, liquidity and profitability simultaneously affect the quality of earnings at Malaysian Islamic Commercial Banks.

The Difference T-test Results
The difference T-test is used to test whether there is a difference in the mean of two unrelated samples. The results of the different t-tests to test hypothesis 15. Table 6 shows that the calculated F is 9.040 with a significance of 0.003, which is smaller than the probability value of 0.05, so it can be concluded that H0 is accepted or has a different variance. Thus, the analysis of the difference t-test must use equal variances, not assumed. The SPSS output shows that the T value is 1.488 and Sig. (2-tailed) is greater than 0.05 (0.139). So, Indonesian and Malaysian Islamic banks' average earnings quality is the same. Leverage does not affect earnings quality Leverage does not affect earnings quality. It means that the debt-equity ratio (DER) is unable to affect earnings quality. Related to agency theory, management is an agent given the authority from the lender or principal to fulfil the obligations as a borrower by properly managing loan funds. Management will tend to manipulate earnings if the company is in an unfavourable condition and is supported by agency theory. To increase the return results, shareholders can use leverage as a basis for knowing the company's assets and sources of funds (Purnamasari & Fachrurrozie, 2020). The high level of DER will also cause the capital or profit to be smaller than the liabilities. The Islamic Banks of Indonesia and Malaysia are indicated to have yet to be able to manage debt optimally in improving earnings quality. The results of this study are in line with research conducted by Dira & Astika (2014), Hasanuddin et al. (2021), Irawati (2012), and BR Setiawan (2017) who also found that leverage, as proxied by the debt-equity ratio (DER), had no significant effect on earnings quality.

Liquidity does not affect on earnings quality
Liquidity relates to the problem of a company's ability to meet its financial obligations, which is a company's ability to meet its short-term debts or obligations (Shabrina, 2019). The liquidity of a company that is too large also indicates that the company cannot manage its current assets as much as possible, which makes financial performance unsuitable. It is possible to manipulate earnings to beautify the earnings information. Related to agency theory, Agency theory is a working relationship between the principal (owner) and agent (manager). As an agent, it is morally responsible for optimising the principal's profits (Irawati, 2012). The results of this study are different with Irawati (2012); Warianto & Rusiti (2014);Ananda & Ningsih (2016), BR Setiawan (2017), and Marpaung, 2019) who found that liquidity, as proxied by the current ratio (CR), has a significant adverse effect on earnings quality.
Profitability has no effect on earnings quality A company's profitability is expected to influence investors' policies on the investments made. Related to agency theory, there is a conflict of interest between the owner (principal) and management (agent) occurs due to the lack of maximum utility between them (Rohmaniyah & Khanifah, 2018). This conflict leads to the nature of management reporting earnings opportunistically for its own sake, leading to low earnings quality (Herninta & Ginting, 2020). High profits will attract investors to invest their funds to expand their business (Sambelay et al., 2017). It is indicated that Indonesian and Malaysian Islamic Commercial Banks still need optimal profitability. The smaller the profitability of a company, the lower the earnings quality, so profitability cannot affect the quality of earnings. These study results align with research conducted by Ginting (2017), BR Setiawan (2017), and Zulman & Abbas (2017) who found that profitability, as proxied by return on assets (ROA), does not affect earnings quality.

Company size is not able to moderate the leverage relationship on earnings quality
Companies with high debt can use their debt to fund their company's operations so they can generate large profits and pay off the debt from the profits generated (Risdawaty & Subowo, 2015). A company that is large enough is indicated as a company with enough assets to be used for its operational activities. Using quite a lot of assets is expected to generate high revenue, which is expected to bring in high operating cash inflows to produce high operating cash flows so that the quality of earnings becomes high (Herninta & Ginting, 2020). However, based on the study's results, it was found that the size of the company at Islamic commercial banks in Indonesia and Malaysia could not moderate the relationship between leverage and earnings quality. It indicates that the company size is separate from its ability to optimally improve financial performance in controlling the use of debt to improve earnings quality at Indonesian and Malaysian Islamic Commercial Banks.

Company size is not able to moderate the liquidity relationship on earnings quality
Liquidity relates to the problem of a company's ability to meet its financial obligations (Shabrina, 2019). High liquidity is expected to influence investors' policies on investments made. The larger the company, the greater the influence of liquidity on earnings quality. However, based on the study's results, it was found that the size of the company at Islamic commercial banks in Indonesia and Malaysia could not moderate the relationship between liquidity and earnings quality. It indicates that the company size has no relationship with its ability to improve asset management in meeting its short-term financial obligations to improve earnings quality at Indonesian and Malaysian Islamic Commercial Banks.
Company size is not able to moderate the profitability relationship on earnings quality A company's profitability is expected to influence investors' policies on investments made. A company's profitability is expected to influence the policies of investors on the investments made, where high profits will be able to attract investors to invest their funds to expand their business (Sambelay et al., 2017). The larger the company, the greater the influence of earnings profitability on earnings quality. However, based on the study's results, it was found that the size of the company at Islamic commercial banks in Indonesia and Malaysia could not moderate the relationship between profitability and earnings quality. It indicates that the company size has no relationship with its ability to improve asset management in increasing profitability effectively and optimally for improving earnings quality at Indonesian and Malaysian Islamic Commercial Banks.
Leverage, liquidity, and profitability simultaneously affect the quality of earnings. Leverage, liquidity, and profitability have no simultaneous effect on Indonesian Islamic banks' earnings quality. It indicates that financial performance consisting of solvency ratios, namely leverage as measured by debt to equity (DER), liquidity ratios, namely current ratio (CR), and profitability ratios as measured by return on assets (ROA), are unable to affect the earnings quality.
Meanwhile, Malaysian Islamic Commercial Banks get different results, where leverage, liquidity and profitability simultaneously affect earnings quality. It indicates that financial performance consists of solvency ratios, namely leverage as measured by debt to equity (DER), liquidity ratios, i.e., current ratio (CR), and profitability ratios as measured by return on assets (ROA) can affect the quality of earnings. This study's results align with previous research that the factors that affect earnings quality can simultaneously affect earnings quality (Risdawaty & Subowo, 2015;Warrad, 2017;Kurniawan & Suryaningsih, 2017).

Differences in earnings quality at Indonesian and Malaysian Islamic Commercial Banks
Earnings quality is an indicator of the ability of disclosed earnings that can predict future cash flows more accurately and can be used by users of financial statements to make the best decisions in meeting the qualitative characteristics of financial statements (Warrad, 2017). The quality of earnings at Islamic commercial banks in Indonesia and Malaysia is the same, or there is no difference. As for the factors of earnings quality proxied by discretionary accruals at Islamic commercial banks of Indonesia and Malaysia showed relatively similar results, where the average value of discretionary accruals at Islamic commercial banks of Indonesia and Malaysia presented in Table 1 shows a value that is not significantly different and the negative value indicates that Indonesian and Malaysian Islamic commercial banks are both decreasing income, so it is suspected that the earnings quality of Islamic commercial banks in the two countries is still low. It indicates that financial information provided by Indonesian and Malaysian Islamic commercial banks needs to be conveyed clearly and accurately so users can make relevant decisions according to their financial statements.

Conclusion
The results show that leverage does not affect earnings quality; liquidity hurts earnings quality; profitability does not affect earnings quality; company size is unable to moderate the relationship of leverage to earnings quality; company size is unable to moderate the relationship of liquidity to earnings quality; company size is unable to moderate the relationship between profitability and earnings quality; Leverage, liquidity and profitability simultaneously have no effect on earnings quality at Indonesian Islamic commercial banks, but simultaneously affect Malaysian Islamic commercial banks; and there is no difference in earnings quality at Indonesian and Malaysian Islamic commercial bank. This study found exciting facts where Indonesian and Malaysian Islamic commercial banks gave consistent results.
The results of this study show the same results in Indonesian and Malaysian Islamic commercial banks related to the use of debt, the use of assets in fulfilling short-term debt, and the utilisation of assets in obtaining profits that could be more optimal in improving earnings quality. It is necessary to evaluate each policy of each factor that affects earnings quality so that the expected targets can achieve the results and objectives of the company and for further researchers to measure earnings quality using different measurements from this study so that they can measure earnings quality more accurately.
According to the importance of the quality of the accounting information, especially accounting profit, some more studies are needed to examine all influencing factors on earnings quality. To have further evaluation of the topic of the study, it is recommended to use some other concepts, such as earnings quality based on the time series of earnings features, earnings quality based on the qualitative features of the theoretical framework, and earnings quality based on the influence on the decision. Further research can observe more extended periods to increase the validity and reliability of the results.

Author Contribution
Syada Aryanto: Review literature, review of the draft, research results and analysis. Mukhzarudfa: The method and supervising research results. Wira Lestari: Conceived and designing the analysis. Amirul Afif Muhamat: Checking research results and proofreading.