ANALISIS PENGARUH EARNING MANAGEMENT TERHADAP NILAI PERUSAHAAN DENGAN PERANAN PRAKTIK CORPORATE GOVERNANCE SEBAGAI MODERATING VARIABEL PADA PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2005 -2008

Abstract

The aims of this research are empirically to find out the influence of earning management on the firm’s asset, the practice of corporate governance upon the firm’s assets and the influence of practices of corporate governance on the relation between earning management and the firm’s asset in a hope for understanding the rule of practices of corporate governance toward the practice of earning management performed by the firm in an effort to increase the firm’s assets. The samples of this research are primarily manufacturing companies listed in Indonesia Stock Exchange around the years 2005 - 2008. Samples are gathered using the method of purposive sampling constituting 90 companies. Hypothesis is tested by the use of multiple regression. The research reveals that corporate governance has significant effect on the firm’s assets with independent commissioner variable and institutional ownership. Managerial ownership tends to lower the firm’s asset while audit quality certainly increases the asset. Independent commissioner, audit quality, and institutional ownership are among those moderating variables applied for earning management and the firm’s assets while managerial ownership is out of moderating variable. Earning management can be minimized by mechanisms of monitoring conducted by independent commissioner, audit quality and institutional ownership.