ANALISIS PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE, PROFITABILITAS DAN LEVERAGE TERHADAP PRAKTEK MANAJEMEN LABA (EARNING MANAGEMENT) (Studi pada Perusahaan Manufaktur yang tercatat pada Bursa Efek Indonesia periode 2005-2009)

Abstract

This study aims to examine the relation of good corporate governance mechanism, profitability and leverage on the earning management practices. Good corporate governance performed by audit committee, board of directors’s size, independent commissioners’s proportion, and institutional ownership. This study uses secondary data were taken from the manufacturing companies which are listed in Bursa Efek Indonesia. 24 manufacturing companies selected as study samples on the period of 2005 until 2009 based on purposive sampling method. The analytical method for this study uses The Ordinary Least Square Regression in the significance level of 5%. Based on the result shows that audit committee, institutional ownership and profitability have a negative and significance relation on the earning management. This result mean that audit committee, institutional ownership and profitability can decrease earning management. However board of directors’s size, independent commissioners’s proportion and leverage have not any significance on the earning management.