ANALISIS PENGARUH KEBIJAKAN PERUSAHAAN DAN MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP EARNINGS MANAGEMENT

Abstract

This research aimed to examine the effect of company policy and mechanism of Good Corporate Governance on
earnings management. While, company policy which was included funding policy was referred to Debt to Asset
Ratio (DER), investment decision was referred to Capital Expenditure to Book Value Asset (CAPBVA),
operational policy was referred to Total Asset Turnover (TATO). Meanwhile, mechanism of Good Corporate
Governance was included of independent commissioner, institutional ownership, and audit committee. The
population was manufacturing companies which were listed on Indonesia Stock Exchange (IDX) during 2014-
2018. Moreover, the data collection technique used purposive sampling. In line with, there were 57 companies
per year as sample or 285 firmly years. The research result concluded funding policy had negative effect on
earnings management. On the other hand, operational policy did not affect earnings management. Investment
policy had positive effect on earnings management, independent commissioner had positive effect on earnings
management, institutional both ownership had positive effect on earnings management and audit committee had
positive effect on earnings management.
Keywords: funding, investment, operational, earnings management