Abstract
Financial reports are a medium for companies to convey information about the accountability of management to the needs of external parties. Earnings management is a deliberate process of taking steps within the limits of general accounting principles both inside and outside the limits. This study aims to analyze the influence of good corporate governance consisting of independent board of directors, managerial ownership and institutional ownership on earnings management by using modified jones models with proxy discretionary accruals. The sample used was a banking company listing in the Indonesia Stock Exchange in the 2013-2017 period using purposive sampling with a sample of 22 companies and analyzed by multiple regression. The results of this study state that partially that the independent board of directors affects earnings management in a positive direction, while managerial ownership and institutional ownership do not affect earnings management. Simultaneously the board of commissioners, independent board of directors, managerial ownership and institutional ownership have no significant effect on earnings management.
Highlights
Laporan keuangan menjadi media bagi perusahaan untuk menyampaikan informasi mengenai pertanggungjawaban pihak manajemen terhadap kebutuhan pihak eksternal
Earnings management is a deliberate process of taking steps within the limits of general accounting principles both inside and outside the limits
This study aims to analyze the influence of good corporate governance consisting of independent board of directors, managerial ownership and institutional ownership on earnings management by using modified jones models with proxy discretionary accruals
Summary
Kepemilikan institusional (institusional ownership) merupakan presentase kepemilikan saham perusahaan yang dimiliki investor institusional seperti pemerintah, perusahaan investasi, bank, perusahaan asuransi maupun kepemilikan lembaga dan perusahaan lain. Kepemilikan institusional diukur dengan persentase kepemilikan institusi dalam struktur saham perusahaan (Juniarti et al, 2009)
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