Abstract
This study aims to empirically prove the effect of good corporate governance on company financial performance with earnings management as a mediating variable in state-owned companies listed on the Indonesia Stock Exchange (IDX) for the 2011-2020 period. The data used in this study were collected using documentation techniques, and the type of data used in this study was secondary data. Data processing uses panel data regression, and the tool used in the study is EViews version 12. The results show that independent directors and independent audit committees directly have a significant negative effect on financial performance, government ownership partially has a significant positive impact on financial performance, and independent commissioners have no significant negative effect on financial performance. In contrast, earnings management had no significant positive impact on financial performance in state-owned companies listed on the IDX from 2011 to 2020. The results also show that independent directors and independent audit committees have no significant positive effect on financial performance. In contrast, independent commissioners and government ownership have no significant negative impact on earnings management. The research did not find the mediating role of earnings management on the influence of independent directors, independent commissioners, government ownership, and independent audit committees on the company's financial performance. Keywords: Good Corporate Governance, Independent Director, Independent Commissioner, Government Ownership, Independent Audit Committee, Financial Performance, Earning Management
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