PENGARUH RASIO CAMEL TERHADAP MANAJEMEN LABA PADA PERBANKAN GO PUBLIC DI INDONESIA

Abstract

This research is meant to test the influence of CAMEL ratio (i.e.: CAR, RORA, ROA, NPM, and LDR) to the earnings management in banking companies which have gone public in Indonesia in 2011 until 2013 which are listed in Indonesia Stock Exchange. This research is a quantitative research. The data uses secondary data in the form of annual financial statement during 2011-2013 periods. The research sample has been done by using purposive sampling technique so that 23 banking companies which have met the criteria have been obtained as samples. The result of the research shows that there is no significant influence of CAR, NPM, and LDR ratios to the earnings management. It has no significance influence because when the value of CAR, NPM, and LDR ratios are getting high the management motivation to do the practical of earnings management is getting low. Meanwhile, the ratio of RORA and ROA has significant influence to the profit management. When the value of RORA and ROA is getting low, the motivation of manager to perform earnings management practices in order to keep it on good performance is getting high.
Keywords: CAMEL Ratio, Banking, Earnings Management