Factors suppressing earnings management practices: evidence from indonesia stock exchange  

Oleh:

Purnama, Winda Anggita ; Lina

Jenis: Article from Proceeding
Dalam koleksi: Proceeding IConEnt 2016 (International Conference on Entrepreneurship) : How Innovation could Improve the Performance and Productivity in Entrepreneurship?, page 1-22.
Topik: Corporate governance; earnings management; conditional revenue model; manufacturing companies.
Fulltext: Winda Anggita Purnama, Lina.pdf (409.0KB)

Isi artikel

The purpose of this research is to give an empirical evidence regarding the effect of corporate governance mechanisms and auditor reputation on earnings management. This research uses ownership concentration, institutional ownership, managerial ownership, the composition of the board of commissioners, and size of audit committee as the proxies of corporate governance mechanisms. This research also uses the control variables such as company’s size, leverage, and profitability. Earnings management in this research is measured by using conditional revenue model by Stubben (2009). The research sample consists of 186 firm-year observations of manufacturing companies which listed in Indonesia Stock Exchange for the period of 2012-2014. The purposive sampling is used to determine the sample and multiple regression analysis method is used to test the hypothesis. The result reveals that institutional ownership and managerial ownership has a positive effect on earnings management. Meanwhile, ownership concentration, the composition of board of commissioners, size of audit committee, and auditor reputation have no effect on earnings management.

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