Effect on Value Earnings Management Company with Good Corporate Governance Practices as Moderating Variable

Emylia Yuniarti,Nadia Hanim,Mukhtaruddin Mukhtaruddin,Y.Y Abdul Talib,F.H Rusly,M.H Mohd Sharif,A Ahmi,D Abdul Kadir,R.H Raja Mohd Ali,S Ishak

doi:10.1051/shsconf/20173404007

Abstract

Firm value reflects the size of the stock market reaction to the company. Increasing the value of the company is an achievement that suitable with the desire of the owner, because as the value of the company increasing as well the welfare of the owner. Earnings management has an influence on the value of the company. Good Corporate Governance to be one way to eliminate the management engineering efforts specifically to make regulations with the requirement for the companies to disclose certain information mandatorily and voluntarily. This research will discuss the influence of earnings management on company value, the effect of Corporate Governance on company value directly, and the effect of Corporate Governance as a moderating variable from the influence of earnings management and firm value. Data analysis technique used in this research is a descriptive data analysis method, analysis model and classical assumption check because this research aims to determine the effect of earnings management, company value and Corporate Governance on Enterprise State-owned Enterprises listed on the Indonesia Stock Exchange. The results of this study are earnings management negatively affect the value of the company, corporate governance itself has no effect on firm value, but as a moderating variable of corporate governance affect earnings management effect on firm value.

Highlights

When the state sector in the management did not achieve the target profit, management can modify the profit
This study aims to analyse the Influence of the Value Profit Management Company, the influence of corporate governance practices affect the value of the Company, Corporate practice Governance influence on the relationship between Earnings Management and Corporate Values
The results showed that there was no evidence that companies with good corporate governance are more or pay higher dividends, but there is evidence that investors assess earnings or dividends equal to the current higher for firms with better corporate governance. the second hypothesis to be tested in this study is H2: Corporate governance effect on the company value By reason of increasing the company value, management make a decision by doing earnings management

Summary

Introduction

When the state sector in the management did not achieve the target profit, management can modify the profit. 3. What is the effect of the Value Profit Management companies weakened by the practice of corporate governance proxy for Corporate Governance Perception Index? Company size is a variable that positively affect earnings management, which means that the larger the company measured by market capitalization, the greater the profit of the company management.

Objectives

Results

Conclusion