PENGARUH LEVERAGE TERHADAP EARNINGS MANAGEMENT DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

Abstract

This research is meant to test the influence of firm characteristic which is proxy by Leverage to the Earnings Management by using Good Corporate Governance as the moderating variable which is proxy by the institutional ownership, managerial ownership, independent commissioner, and audit committee through the annual financial statement which has been prepared by the company which is categorized in Indonesia’s Best Wealth Creators in 2014 which are listed in Indonesia Stock Exchange. The population is the company which is categorized in Indonesia’s Best Wealth Creators in 2014 which are listed in Indonesia Stock Exchange (IDX) in 2012-2014 periods which have been done by using judgment sampling method and based on predetermined criteria 20 companies have been selected as samples. The analysis method has been carried out by using moderation regressions analysis and the instrument of SPSS (Statistical Product and Service Solutions). The result of this research shows that leverage has negative and insignificant influence to the earnings management. Meanwhile, the variable of institutional ownership and managerial ownership is proven to be the moderating variable to the correlation between leverage and earnings management. Independent commissioner, and audit committee is not proven to be the moderating variable to the correlation between leverage and earnings management.
Keywords: Leverage, corporate governance and earnings management.