| dc.description.abstract | Earnings management is an act of deliberate intervention by the manager in
the process of preparing financial statements to enhance the reporting of income, it
can increasing or reducing accounting profit for taking some individual gains. This
research aimed to examine the influence of corporate governance mechanism that
consists of institutional ownership, managerial ownership, the audit committee, size
of board of commisioners, the proportion of independent of commissioners, size of
board of directors, size of company to earnings management on manufacture
companies in Indonesian Stock Exchange in the period 2008 until 2009 with partially
influence.
Data for research using secondary data, namely audited financial statements
obtained from Indonesian Stock Exchange. Sample used in this research as much as
74 manufacture companies which listed in the Indonesian Stock Exchange selected
using purposive sampling method. Earnings management was measured by
calculation of discretionary accruals using modified Jones' model. This research
hypothesis were tested using multiple regressions and calculated t value to know the
influence according to partial. The results of the analysis showed that institutional
ownership, managerial ownership, the audit committee, and the size of
commissioners had positive significant influence to earnings management. But the
proportion of independent of commissioners, the size of directors, and the size of
company had negative significant influence to earnings management. | en_US |
