ANALISIS GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

The inequality in obtaining information that occurs between the principal and the agent is known as information asymmetry, which provides an opportunity for managers to perform earnings management. Earnings management is done by manipulating various information contained in the financial statements of a company. Good Corporate Governance (GCG) is a solution to minimize earnings management so that the company's condition is healthier, which of course uses certain principles. This study aims to examine the effect of the Good Corporate Governance mechanism on earnings management. The Good Corporate Governance mechanism used in this study consists of independent commissioners, managerial ownership, institutional ownership, and an audit committee. The research population is manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) for the 2015-2019 period using purposive sampling method so that 11 samples of companies from 58 manufacturing companies are included in the Indonesia Stock Exchange (BEI) in the goods industry sector consumption. The results showed that partially or from each of the Good Corporate Governance mechanisms used by the study, independent commissioners had no effect on earnings management, managerial ownership had no effect on earnings management, institutional ownership had no effect on earnings management, and the audit committee had a significant effect on management. profit. However, simultaneously (as a whole), independent commissioners, managerial ownership, institutional ownership, and the audit committee have a significant effect on earnings management.