PENGARUH GOOD CORPORATE GOVERNANCE, PROFITABILITAS, DAN LEVERAGE TERHADAP MANAJEMEN LABA

Abstract

This research aimed to examine the effect of Good Corporate Governance, profitability, and leverage on earning management Good Corporate Governance (GCG) was measured by audit committee size, proportion of independent commissioner board, institutional and managerial ownership. While profitability was measured by Return On Asset (ROA), leverage was measured by Debt to Asset Ratio (DAR), and earning management was measured by Discretionary Accrual. The research was quantitative. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with that, there were 102 samples from 34 Consumer Goods manufacturing companies which were listed on Indonesia Stock Exchange (IDX) 2018-2020. However, there was outlier data; so that the total sample became 65.Furthermore, the data analysis technique used multiple linear regression. The research result concluded that GCG (audit committee board, proportion of independent commissioner board, institutional and managerial ownership) did not affect earning management of Consumer Good manufacturing companies which were listed on IDX 2018-2020. On the other hand, profitability as well as leverage give positive influence to the earning management of Consumer Good manufacturing companies which were listed on IDX 2018-2020.