PENGARUH GOOD CORPORATE GOVERNANCE, LEVERAGE, DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA

Abstract

This research has been conducted to obtain empirical evidence about the influence of corporate governance, leverage and firm size to the earnings management of the banking sector which consists of institutional ownership, independent commissioner, audit committee, leverage and firm size to earnings management. The research objects are all banking companies which are listed in Indonesia Stock Exchange in 2013-2016 periods. Based on the purposive sampling method, 33 companies have been selected as samples, with 4 years observation,the total data which have been applied in this research is 132 firm year. The result of model feasibility test shows that the implementation of corporate governance to the earnings management of banking sector which is proxy by: (institutional ownership, independent commissioner, audit committee), leverage and firm size to earnings management give significant influence, it indicates that the research model is feasible to be continued in the next analysis. The result of the hypothesis test shows that institutional ownership, independent commissioner and audit committee do not give any significant influenceto the earnings management, this result explains the magnitude of institutional ownership, independent commissioner and audit committee cannot determine earnings management activity which has been conducted by the company management.
Keyword: Good corporate governance, leverage, firm size, earnings management