| This study aims to determine the empirical evidence on the effect of managerial ownership, leverage, and corporate ethics disclosure on earnings management and its implication on firm value. This study used two research model. The first model aims to obtain empirical evidence regarding the effect of managerial ownership, leverage, and corporate ethics disclosure on earnings management. The second research model aims to see the effect of managerial ownership, leverage, corporate ethics disclosure, and earnings management on firm value. The study used multiple linear regression method for both models. The study was conduct upon manufacturing companies listed on Bursa Efek Indonesia between 2011-2015. This study used purposive sampling in choosing the sample. The first research model used 296 samples, whereas the second research model used 200 samples. The result of the first research model showed that the first hypothesis was rejected due to the fact that managerial ownership was not proven to affect earnings management. On the contrary, the second and third hypothesis' were accepted, in which the leverage and corporate ethics disclosure affect earnings management. For the second research model, the fourth hypothesis was accepted. Managerial ownership has a negative effect on firm value. However, the fifth, the sixth and the seventh hypothesis' were rejected because the research revealed that leverage, corporate ethics disclosure and earnings management did not have any affect on firm value. |