THE EFFECT OF CORPORATE GOVERNANCE ON  PROFIT MANAGEMENT

Frans Wijsen

Frans Wijsen Radboud University, Nijmegen, Netherland

Abstract

Earnings management is an intervention on the financial statements carried out by the management so that the company's performance looks optimal. This study aims to examine the effect of the audit committee, board of commissioners, and managerial ownership of company earnings management. This research was conducted on 30 mining companies listed on the Indonesia Stock Exchange from 2017 to 2021. The data used in this research is the financial report data of mining companies going public. Data analysis using multiple linear regression. The results of the study prove that the audit committee has an effect on earnings management. The existence of supervision by the audit committee can minimize the occurrence of earnings management. In addition, the board of commissioners and managerial ownership is proven to have no effect on earnings management. Keywords:Earnings Management, Audit Committee, Board of Commissioners, Managerial Ownership

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