Abstract
This study aimed to analyze the influence of corporate governance on accounting conservatism, analyze the impact of corporategovernance on earnings management, analyze the effect of accounting conservatism and analyze the impact of corporate governance on earnings management through accounting conservatism. The sample in this study as many as 15 banks. Data were analyzed using path analysis. The analysis showed that corporate governance affect accounting conservatism. Corporategovernance effect on earnings management. Accounting conservatism effect on earnings management. Corporate governanceeffect on earnings management through accounting conservatism
Highlights
The banking industry in 2016 still plays an important role in the financial system in Indonesia with a market share of 60 percent
Influence of Corporate Governance on Accounting Conservatism Corporate Governacesignificant and positive impact on accounting conservatism, this means that the greater the effect of the number of independent board increasing the level of accounting conservatism
The Government through the Bank Indonesia regulates the application of good corporate governance in the banking industry by issuing a Bank Indonesia regulation No 8/4 / PBI / 2006 regarding the implementation of good corporate governance for commercial banks, as well as the FSA regulations NO. 55 / FSA / 2016 concerning the number of commissioners is at least 3 people and 50% should be composed of independent board
Summary
The banking industry in 2016 still plays an important role in the financial system in Indonesia with a market share of 60 percent. Earnings management arise due to a conflict of interest between the management (agent) by the owner (principal) This arises because each party seeks to achieve and maintain the desired level of prosperity. Corporate governance is the set of rules that govern the relationship between shareholders and management company. The concept of good corporate governance is proposed in order to achieve a more transparent corporate management for all users of financial statements
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