scholarly journals Corporate governance quality, firm size and earnings management: empirical study in Indonesia Stock Exchange

2018 ◽  
Author(s):  
Mukhtaruddin Mukhtaruddin
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Good Corporate Governance ◽  
Corporate Governance Quality

Earnings management (EM) is manipulation done by management in preparing financialstatement in order to gain management advantages or to increase the firm value.EM can reduce the quality of financial statements because it does not show the realearning periodical. This research aims to identify the effect of good corporate governance(GCG) (institutional ownership, managerial ownership, frequency of boardmeetings, frequency of audit committee (AC) meetings), firm size, and leverage on theEM. Population comprises the companies in LQ 45 index of Iindonesia Stock Exchange(IDX) for the period 2010–2014. Samples of the research were taken using purposivesampling method, and the variables are tested using multiple linear regression analysis.The results of the research show that partially, only leverage has significant effect onEM, while institutional ownership, managerial ownership, frequency of board meeting,frequency of AC meetings, and firm size have no significant effect on EM, but all ofthe variables have simultaneously significant effect on EM. Limitations of the researchare the only used 6 independent variables and 21 companies as samples of the research

MEKANISME GOOD CORPORATE GOVERNANCE, UKURAN PERUSAHAAN, STRUKTUR KEPEMILIKAN MANAJERIAL DAN LEVERAGE PADA MANAJEMEN LABA PADA EMITEN PERBANKAN DI BURSA EFEK INDONESIA

2015 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Rowland Pasaribu ◽  
Dionysia Kowanda ◽  
Muhammad Firdaus
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Earning Management ◽  
Managerial Ownership ◽  
Good Corporate Governance

ABSTRACT This reseach amied at knowing the influence of audit quality, propotion of independent commissioner, audit committe, firm size, managerial ownership and leverage. It used purposive sampling technique or choosing samples based on certain criteria. The sample of this research was 25 companies of banking industry in indonesia stock exchange period 2008-2012. Descriptive analysis, classical test, as well as multiple linear regression by examining the hypothesis using SPSS 20.0 were used to analyzed the data. The result shows that (1) all independent variables simultaneously hasinfluence on earnings management; (2) however partially audit committee, audit quality, managerial ownership and leverage do not affect significantly to earnings management; (3) only firm size and independent commissioner that affect significantly to earning management. Keywords: Earning Management, Good Corporate Governance, Firm Size, BankingABSTRAK Penelitian ini bertujuan untuk menganalisis dan menguji secara empiris signifikansi parsial dan simultan dari kualitas audit, komisaris independensi audit, komite audit, ukuran perusahaan, struktur kepemilikan, dan leverage terhadap manajemen laba pada emiten perbankan di bursa efek Indonesia periode 2008-2012. Teknik analisis yang digunakan adalah multiregresi. Hasil studi menunjukkan bahwa secara simultan seluruh variabel independen berpengaruh signifikan sedangkan secara parsial hanya ukuran perusahaan dan komisi independensi audit yang berpengaruh signifikan terhadap manajemen laba. Kata Kunci: Manajemen Laba, Mekanisme Tata Kelola, Ukuran Perusahaan, Perbankan,

Corporate Governance, Earnings Management dan Kinerja Perbankan di Indonesia

2019 ◽  
Vol 16 (1) ◽  
pp. 68
Author(s):  
Made Ratih Baskaraningrum ◽  
Agus Fredy Maradona
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Banking Industry ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Good Corporate Governance

ABSTRACT            The purpose of this research is to investigate the concept of the importance of the role of good corporate governance in the banking industry in Indonesia. Specifically, this study intends to examine whether good corporate governance plays a role in improving company performance, especially by limiting earnings management practices. This study focuses on banking companies in Indonesia that are listed on the Indonesia Stock Exchange (IDX). Determination of company samples in this study was carried out by purposive sampling method, with the criteria of banking companies listed on the Indonesia Stock Exchange during the 2014-2016 period. The data collection method used in this study was the method of documentation study. The data analysis method used is Path Analysis.The results of the Square Multiple Correlation for earnings management amounted to 0.795 and banking performance was 0.860, so for earnings management variables influenced by managerial ownership, institutional ownership, the size of the independent board of commissioners, the audit committee amounted to 79.5%. While banking performance variables are influenced by managerial ownership, institutional ownership, board of commissioners size, the proportion of independent commissioners, audit committees and earnings management is 86%. Empirical benefits in research are about the application of corporate governance, earnings management and financial performance in the banking industry in Indonesia. The practical benefits in this study can provide benefits for companies in the application of appropriate corporate governance and benefits for investors who invest their capital in the company and can also be taken into consideration for companies to reduce profit management in the company so as to improve banking performance in Indonesia.

scholarly journals Effect of Good Corporate Governance (GCG) Mechanism on Earning Management Practices and the Impact on Stock Returns (Case Study on LIQUID (lQ 45) Companies Listed in Indonesia Stock Exchange Period 2013-2017)

2015 ◽  
Vol 5 (3) ◽  
pp. 11
Author(s):  
M. Noor Salim ◽  
M. Rusman HN
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Returns ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Earning Management ◽  
Managerial Ownership ◽  
Good Corporate Governance

This study aims to analyze the effect of the mechanism of good corporate governance (GCG) on earnings management practices and their impact on stock returns. The population used in this study is the companies included in the go public LQ 45 group listed on the Indonesia Stock Exchange in 2017. The analytical tool used in this study is Eviews software version 8.0. The results of the analysis in this study indicate that (1) Institutional Ownership has a negative and significant effect on Earning Management Practices, (2) Managerial Ownership has a negative and significant effect on Earning Management Practices, (3) Independent Board of Commissioners has a negative and significant effect on Earnings Management, (4) The Audit Committee has a negative and significant effect on Earning Management Practices, (5) Institutional Ownership, Managerial Ownership, Independent Board of Commissioners and Simultaneous Audit Committee (Together) have a significant effect on earnings management, (6) Earning Management Practices have a negative and significant effect on stock returns(7) Institutional Ownership has a positive and significant effect on stock returns, (8) Managerial ownership has a positive and significant effect on stock returns, (9) The Independent Board of Commissioners has a positive and significant effect on stock returns, (10) The Audit Committee has a positive and significant to stock returns, and (11) Earning Management is able to mediate the influence of Institutional Ownership, Managerial Ownership, Independent Board of Commissioners, and the Audit Committee simultaneously (jointly) on Stock Returns. It is recommended that the LQ45 company increase the portion of Institutional ownership as part of a supervision for management in managing the company so as to increase stock returns on an ongoing basis.

scholarly journals Corporate governance quality, firm size and earnings management: empirical study in Indonesia Stock Exchange

2017 ◽  
Vol 14 (4) ◽  
pp. 105-120 ◽  
Author(s):  
Yulia Saftiana ◽  
Mukhtaruddin ◽  
Krisna Winda Putri ◽  
Ika Sasti Ferina
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership

Earnings management (EM) is manipulation done by management in preparing financial statement in order to gain management advantages or to increase the firm value. EM can reduce the quality of financial statements because it does not show the real earning periodical. This research aims to identify the effect of good corporate governance (GCG) (institutional ownership, managerial ownership, frequency of board meetings, frequency of audit committee (AC) meetings), firm size, and leverage on the EM. Population comprises the companies in LQ 45 index of Iindonesia Stock Exchange (IDX) for the period 2010–2014. Samples of the research were taken using purposive sampling method, and the variables are tested using multiple linear regression analysis. The results of the research show that partially, only leverage has significant effect on EM, while institutional ownership, managerial ownership, frequency of board meeting, frequency of AC meetings, and firm size have no significant effect on EM, but all of the variables have simultaneously significant effect on EM. Limitations of the research are the only used 6 independent variables and 21 companies as samples of the research.

scholarly journals Pengaruh Good Corporate Governance Terhadap Manajemen Laba Perusahaan Sektor Barang Konsumsi

2021 ◽  
Vol 9 (2) ◽  
Author(s):  
Veren Noviyanti ◽  
Heti Herawati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Independent Variables ◽  
Management Board ◽  
Good Corporate Governance

Earnings management is a manager's deliberate action to manipulate financial statements with permissible limits with the aim of providing incorrect information for users of financial statements. The variables tested in this study consisted of independent variables and dependent variables. The independent variables tested in this study consisted of independent board of commissioners, managerial ownership, audit committee, and board of commissioners. While the dependent variable is earnings management as measured by the modified Jones model discretionary accruals. This study uses 52 data on manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange from 2016 to 2019. Sampling using the purpose sampling method. All data obtained from the company's annual financial statements. The results of this research show that partially independent board of commissioners and managerial ownership have no effect on earnings management, while the size of the board of commissioners and audit committee has a positive effect on earnings management. Independent board of commissioners, managerial ownership, audit committee, and board of commissioners simultaneously have no effect on earnings management.   Keywords: Good Corporate Governance, Earnings Management, Board of Independent Commissioner, Board of Commissioner, Audit Committee, Managerial Ownership

scholarly journals Pengaruh Good Corporate Governance Dan Firm Size Terhadap Profitabilitas (Studi Empiris Pada Perusahaan Non Keuangan Indeks LQ 45 Yang Terdaftar Di BEI Tahun 2013-2017)

2019 ◽  
Vol 3 (2) ◽  
pp. 79-101
Author(s):  
Faisal Suroto ◽  
Iwan Setiadi
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Audit Quality ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sample Selection ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership ◽  
Good Corporate Governance

This study aims to determine the effect of Good Corporate Governance on profitability and company size. Good corporate governance in this study is proxied by independent board of commissioners, managerial ownership, institutional ownership, audit quality and Firm Size. Company profitability is measured by Return on Equity (ROE). This type of research is quantitative with a descriptive approach. The population in this study is the LQ45 non-financial company listed on the Indonesia Stock Exchange in 2013-2017. The sample selection technique is using purposive sampling. The type of data used is student data. The data analysis technique in this study used multiple linear regression analysis. The results of this study indicate that simultaneous independent commissioner variables, managerial ownership, institutional ownership, audit quality and firm size have a significant effect on profitability. partially independent board of commissioner variables have a significant negative effect on priofitability. Managerial ownership does not have a significant effect on profitability. Institutional ownership has a significant positive effect on profitability. Audit quality does not have a significant effect on profitability, Firm size does not have a significant effect on profitability.

scholarly journals THE EFFECT OF PROFITABILITY AND GOOD CORPORATE GOVERNANCE ON EARNINGS QUALITY

2020 ◽  
Vol 25 (1) ◽  
pp. 13-27
Author(s):  
Rani Aprilian ◽  
Kiagus Andi ◽  
Yunia Amelia
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Good Corporate Governance

This study aims to examine the effect of profitability and good corporate governance on earnings quality in food and beverage companies listed on Indonesia Stock Exchange (IDX) 2015-2018 period. Profitability is calculated using Return on Assets (ROA). The proxy of Good Corporate Governance are institutional ownership, managerial ownership, audit committee, and independent commissioner. The dependent variable in this study is earnings quality measured by discretionary accrual using Modified Jones Model to detect earning management. This study used secondary data from the official website of Indonesian Stock Exchange (www.idx.co.id) and the sampling method in this study uses purposive sampling method. The data analysis in this study using multiple linear regression analysis. The results of this study indicate that profitability and audit committee have a positive effect on earnings quality, while the independent commissioner has a negative effect on earnings quality. Other independent variables i.e. institutional ownership and managerial ownership have no significant effect on earnings quality

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP EARNINGS MANAGEMENT

2019 ◽  
Vol 8 (1) ◽  
pp. 35
Author(s):  
Hexana Lastanti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Management Problem ◽  
Good Corporate Governance ◽  
The Difference

<p class="Style2">To be able to achieve good corporate governance, in addition to managerial ownership, institutional ownership and board of directors, the role of the audit committee also needed to further enhance the quality of information contained in the financial statements in accordance with his duties. Good corporate governance is one way to address the practice of earnings management. Study to examine the effect of the mechanisms of good corporate governance on earnings management that uses the data in the Indonesian capital market, still very little is done. Earnings management is a management action in the process of preparing financial statements to influence the level of profit that is displayed. The goal is to improve the welfare of certain parties, which can be identified as an advantage. Earnings management problem is the agency problem that is often triggered by a separation of the role or the difference between the interests of the owners (shareholders) with managing the company's management.</p>

scholarly journals Analisis Struktur Kepemilikan dan Good Corporate Governance terhadap Manajemen Laba pada Perusahaan di Bursa Efek Idonesia

2021 ◽  
pp. 220-225
Author(s):  
Jova Yolanda ◽  
Dian Efriyenti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Practice ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Good Corporate Governance ◽  
The Board Of Directors

Earnings management practice is the decision to choose a particular accounting method that can achieve the goal of increasing reported profits or reducing investment losses. Misappropriation of financial statements by management can affect the amount of reported income. This study aims to determine whether ownership structure and good corporate governance have a significant influence on earnings management. The study was conducted on pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) in a row for the 2016-2020 period. The sample technique used is purposive sampling, so as many as 7 samples of companies are used. The data testing method uses multiple linear analysis. The results of the data test show that partially institutional ownership has a negative and significant effect on earnings management, independent commissioners, the audit committee, and the board of directors has a negative but not significant effect on earnings management. Simultaneously the results state that institutional ownership, independent commissioners, audit committees, and the board of directors have an effect but not significantly on earnings management.

scholarly journals PENGARUH PROFITABILITAS DAN GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

2019 ◽  
Vol 1 (2) ◽  
pp. 158-173
Author(s):  
Rama Andi Wiguna ◽  
Muhammad Yusuf
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Significant Positive Effect ◽  
Good Corporate Governance ◽  
Positive Effect

This research aimed to get empirical evidence about the effect of profitability and good corporate governance as proxied by the proportion of independent board commissioners, number of board commissioners meetings, proportion of audit committee, number of audit committee meetings, managerial ownersip and institutional ownership. The population of this research was companies listed on the Indonesia Stock Exchange in 2016-2017. The sample of this research was fixed by purposive sampling method so that was found 88 samples. Technique of data analysis was multiple linear regression. The result of research showed that profibility, the proportion of independent board commissioners, proporsion of audit committee, managerial ownership and institutional ownership had significant positive effect on firm value, while commissioners meetings and audit committee meetings had no effect on firm value

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