PENGARUH CORPORATE GOVERNANCE, KOMPENSASI EKSEKUTIF, PROFITABILITAS TERHADAP EARNING MANAGEMENT

Abstract

This research aimed to examine the effect of institutional ownership, independent commissioner, executive
compensation, and profitability on the earning management. While, based on agency theory, some agency
problems had arised since there was opportunistic behavior of the agent. This opportunistic behavior referred to
management’s behavior which maximized its own prosperity that contrary to the principal interest. Moreover,
the in-purpose method, which was directly chosen by the management, known as earning management. The
research was quantitative. Furthermore, the population was manufacturing companies which were listed on
Indonesia Stock Exchange 2015-2017. Meanwhile, the data collection technique used purposive sampling. In line
with, there were 69 samples of company. In addition, the data analysis technique used multiple linier regression
with SPSS 20. The research result concluded independent commissioner and profitability had negative effect on
the earning management. On the other hand, the institutional ownership and executive compensation did not
affect the earning management.
Keyword: earning management, institutional ownership, independent commissioner, executive compensation,
profitability.