PENGARUH KUALITAS AUDIT DAN CORPORATE GOVERNANCE TERHADAP REAL EARNINGS MANAGEMENT

Abstract

This research aimed to examine, emphirically, the effect of audit quality and corporate governance on the real earnings management of consumptive industry manufacturing companies, which were listed on Indonesia Stock Exchange. While, the research was quantitative. Moreover, the population was consumptive manufacturing companies which were listed on Indonesia Stock Exchange 2014-2017. Furthermore, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, as there were 15 companies with 4 years observation, the total samples was 60. In addition, the data analysis technique used multiple linear. The research result concluded manageral and institusional ownership did not affect the real eranings management. On the other hand, the audit quality and proportion of independent commissioner board had positive effect on the real earnings management. It meant, the higher the audit quality and proportion of independent commissioner board, the higher the company would tend to have real earnings management practice.
Keywords: audit quality, managerial ownership, institutional ownership, proportion of independent commissioner board, real earnings management