PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP PRAKTIK MANAJEMEN LABA

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.