Pengaruh Implementasi Corporate Governance terhadap Manajemen Laba pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia

Abstract

This study aimed to determine the effect of the implementation of corporate governance on earnings management in manufacturing companies listed on the Indonesia Stock Exchange. Corporate Governance indicators used is the proportion of the commissioners, the proportion of the audit committee, the auditor’s reputation, and the remuneration of the board of commissioners and directors. Earnings management is measured using discretionary accruals obtained by Jones Model (1991). The sample in this study amounted to 29 companies obtained based on certain criteria (purposive sampling). This study used data from the 2009-2011 time series. The data obtained from company financial statements published by www.idx.co.id and ICMD (Indonesian Capital Market Directory) 2010. The hypothesis of this study is the individual corporate governance indicators: the proportion of the commissioners (PDK), the proportion of the audit committee (PKA), the auditor’s reputation (AUD), and the remuneration of the board of commissioners and directors (REM) effect on earnings management, and simultaneously the four variables has an influence on earnings management (DA). SPSS version 18.0 software is being used in this hypothesis testing, where classical assumption testing has been done previously to ensure the results is not bias. Partially, hypothesis testing results showed that only the auditor’s reputation significant effect on earnings management, while other corporate governance indicators have no effect on earnings management. Simultaneously, corporate governance proved to significantly influence earnings management.