THE EFFECT OF CORPORATE GOVERNANCE ON PROFIT MANAGEMENT

  • 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

References

Agustia, D. (2013). The Effect of Good Corporate Governance Factors, Free Cash Flow, and Leverage on
Profit Management. Journal of Accounting and Finance, 15(1), 27–
42.https://doi.org/10.9744/jak.15.1.27-42.
Febrianti, S. (2023). The Influence of Ownership Structure and Corporate Governance on Profit
Management. Competitive: Journal of Accounting and Finance, 7(1).
http://dx.doi.org/10.31000/competitive.v7i1.4720
Lestari, DP (2023). The Effect of GCG Mechanisms on Profit Management Practices in Banking
Sector Companies Listed on the IDX in 2016-2020. Article. STIE Indonesia Banking
School.
Martias, A. (2023). Analysis of the Effect of Corporate Givernance on Profit Management and Market
Earning Value of LQ45 Property & Real Estate Companies on the Indonesia Stock Exchange.
Scientific Journal of Reflection: Economic, Accounting, Management and Business, 6 (1).
Reynard, R., and Firdausy, CM (2021). The Influence of Auditor Quality and Good Corporate Governance
on Earnings Management in Manufacturing Sector Public Companies Listed on the Indonesia Stock
Exchange. Journal of Business Management and Entrepreneurship, 5(6), 568.
https://doi.org/10.24912/jmbk.v5i6.14948
Rohmah, NW and D. Meirini (2022). The Effects of Company Size, Profitability, Managerial
Ownership, and Gender Diversity on Profit Management (Empirical Study of Manufacturing
Companies Listed on the IDX LQ45 Index for the 2016-2020 Period). Compartments: Scientific
Journal of Accounting, 20(2).
Sari, LP, and Widyarti, ET (2015). Analysis of the Effect of Financial Ratios on Profit Growth (Case
Study: Food and Beverages Companies listed on the Indonesia Stock Exchange for the period 2009
to 2013). Diponegoro Journal of Management, 4(4), 1–11.
Senastry, K. (2020). Earnings Management: Definition, Functions, Causative Factors, Patterns and
How to Do It. https://accurate.id/akunansi/pengertian-lengkap-management-laba/
Tamara, MT, S. Astuti, and Sutoyo. 2022. The Influence of Good Corporate Governance, Profitability, and
Company Size on Profit Management in Companies. Compartments: Scientific Journal of Accounting,
20(2): 329-340.
Widyaningsih, H. (2017). The Effect of Corporate Governance on Profit Management. Nominal,
Barometer of Accounting and Management Research, 6(2).
https://doi.org/10.21831/nominal.v6i2.16652.
Published
2022-08-08
How to Cite
WIJSEN, Frans. THE EFFECT OF CORPORATE GOVERNANCE ON PROFIT MANAGEMENT. Proceeding International Conference Keputeraan Prof. H. Kadirun Yahya, [S.l.], v. 1, n. 1, p. 7-12, aug. 2022. ISSN 2961-7960. Available at: <https://jurnal.pancabudi.ac.id/index.php/keputeraan/article/view/4270>. Date accessed: 28 mar. 2024.