PENGARUH CORPORATE GOVERNANCE, LEVERAGE DAN KINERJA KEUANGAN TERHADAP MANAJEMEN LABA

Abstract

This research aimed to analyze the effect of Good Corporate Governance, leverage and
financial performance on earning management; with managerial and institutional
ownership, independent commissioner, leverage also financial performance as
independent variables; and earning management as the dependent variable. The
population was Food and Beverages manufacturing companies which were listed on
Indonesia Stock Exchange 2017-2019. Moreover, the research was quantitative.
Furthemore, the data collection technique used purposive sampling. In line with, there
were 24 companies as the sample with a total of 120 data. Additionally, the data analysis
technique used classical assumption tests (normality, multicolinearity, autorelational and
hetereocedacity Test). The research result concluded that managerial ownership did not
affect earning management since its ownership was very small. Likewise, institutional
ownership did not affect earning management as it only focused on current earning.
Similarly, independent commisioner did not affect earning management as poor
competition within companies; i.e. commissioner was chosen from its award and close
family relationship. Besides, leverage did not affect earning management, since
companies with higher leverage were able to pay their debt. Correspondingly, financial
performance did not affect earning management.
Keyword : good corporate governance, leverage, financial performance, earning
management