ANALISIS STRUKTUR CORPORATE GOVERNANCE DAN DISCLOSURE DALAM UPAYA MENINGKATKAN USEFULNESS INFORMASI AKUNTANSI BAGI PELAKU PASAR MODAL DI BURSA EFEK INDONESIA

Abstract

Good Corporate Governance (GCG) is one alternative to eliminate earnings management (as proxy for usefulness of accounting information). The existence of GCG elements is expected to improve the quality of GCG implementation. The study based on three grand theories namely agency theory, signalling theory and positive accounting theory. The objectives of the study were to analyze: (1) the impact of corporate governance structure and (2) the effect of the political cost (asset size as proxy) on earnings management, (3) the impact of earnings management on earnings response coefficient (ERC). The samples of the study were 122 public firms-non financial industry listed on Indonesian Stock Exchange in 2010-2014. The research data were processed by Statistical Package for Social Science (SPSS). The result of the study was that institutional ownership, management ownership and the proportion of the board independen commisioners were as variables that significantly had an influence on usefulness of accounting infomation that proxied by earnings management. The total of board commisioners and asset size wereasvariables that do not affect to earnings management. Meanwhile, the main finding of the study was that earnings management as a signal could be responded by markets (investor or potential investor) which showed that earnings management affect ERC