PENGARUH MEKANISME CORPORATE GOVERNANCE, LEVERAGE, DAN PROFITABILITAS TERHADAP EARNING MANAGEMENT

Abstract

This research aimed to examine the effect of institutional ownership, independent commissioner, leverage, and profitability on earning management which was measured by discretionary accrual. While, independet variables were institusional ownership, independent commissioner, leverage, and profitability. Meanwhile, dependent variable was earning management. In agency theory, the agent program occured as there was opportunistic behavior of its agent; i.e. management behavior which maximize its own wealfare in contrast with principal need. The method itself was chosen directly by management as known as earning management. The research was quantitative. Moreover, the population was manufacturing companies which were listed on Indonesia Stock Exchange (IDX) 2017-2019. Furthermore, the data collection technique used purposive sampling. In line with, there were 75 companies as sample, with total of 225 data. Additionally, the data analysis technique used multiple linear regression with SPSS 23. The research result concluded independent commissioner and profitability had positive effect on earning management. On the other hand, institusional ownership and leverage did not affect earning management.
Keyword: earning management, institutional ownership, independent commissioner, leverage, profitability