The objective of this study is to examine the influence of corporate governance (which
represented by the proportion of independence commissioner, size of board director,
gender diversification, audit committee, managerial ownership, and institutional
ownership) to earnings management practice. Second, to examine the influence of
corporate governance and earnings management practice to the firm value as outlined
in the first and second models of analysis. The method of analysis of this research used
multiple regressions because there is more than one independent variable. The objects
of this study are the manufacturing companies listed at Indonesia Stock Exchange for
the year 2008-2010. The results of the first model show that the proportion of
independence commissioner, size of board director, gender diversification, audit
committee, and managerial ownership are positively related to the earnings
management practice while institutional ownership has negative influence. The results
of the second study show that the proportion of independence commissioner, size of
board director, audit committee, institutional ownership, and earnings management
practice are positively related to the firm value while the gender diversification and
managerial ownership have negative influence. |