DOI: 10.5176/2010-4804_2.1.172
Authors: Dian Indriana Trilestari and Vidi Arini Yulimar
Abstract:
This research aims to analyse emprically the impact of corporate governance mechanism proxied by commissary board’s size, audit committee’s size, institutional ownership, managerial ownership, and company’s size on earnings management in Indonesian Stock Market year 2008-2010. Good corporate governance is expected to affect financial report through transparency, accountability, responsibility, independency, and fairness. The population is manufacture companies listed in Indonesian Stock Market year 2008-2010 as many as 350 companies. The sample is drawn by using purposive sampling technique and results in 265 companies. The data are analysed by using multiple linear regression with t-test. The hypotheses analysis results show that commissary board’s size, institutional ownership and company’s size have significant impact on earnings management measured by discretionary, while audit committee and managerial ownership do not have impact on earnings management.
Keywords: governance mechanism; earnings management; commissary board size; audit committee, institutional ownership; managerial ownership; company size
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