PENGARUH GOOD CORPORATE GOVERNANCE SEBAGAI PEMODERASI KECAKAPAN MANAJERIAL TERHADAP MANAJEMEN LABA

Abstract

The purpose of this research is to find out influence of managerial ability and good corporate governance to
earning management and influence of good corporate governance as the moderate correlation of managerial
ability to the earning management. In this research the earning management is measured by using abnormal
production, abnormal discretionary accrual, and abnormal cash flow, managerial ability is measured by using
data envelopment analysis, and good corporate governance is measured by using good corporate governance
score. The population of this research is manufacturing companies which are listed in Indonesian Stock
Exchange in 2013-2016 periods. The sample collection technique has been done by using purposive sampling,
and 360 companies sample during 4 years have been obtained. The result of this research shows that, managerial
ability has positive influence to the earning management, good corporate governance has negative influence to
the earning management, and good corporate governance as the moderate variable able to weaken the influence of
managerial ability to the earning management. This showed that the implementation of GCG have important
role for corporate operations, it can be seen from the GCG mechanism can mitigate opportunistic behavior of
management, in addition the implementation of GCG mechanism in Indonesia has been going well.
Keyword: abnormal production, abnormal discretionary accrual, abnormal cash flow, data envelopment
analysis, good corporate governance