Analisis Pengaruh Kepemilikan Institusional Dan Kualitas Audit Terhadap Manajemen Laba

Abstract

One of the interesting studies in accounting research recently is earnings management and it has been examined widely in financial accounting literature. Earning Management is the moral hazard prob¬lem of a manager that arises because of the conflict of interest between the manager as agent and the shareholder and the owner as principal. The behaviour of earning management is viewed to have influence on the decision making quality by financial statement users. It is hypothesized that the insti¬tutional ownership and audit quality can mitigate the degree of earnings management that is conducted by firm managers. The objective of this research is to analyze the effect of the institutional ownership and audit quality on the earning management This research is a descriptive-analytic research in non financial emiten listed at Jakarta Stock Exchange in 1999-2003. The result of this research shows that the institutional ownership and audit quality have negative and significant effect on the earning manage¬ment. The existence of the institutional ownership and audit quality on non financial emiten listed at Jakarta Stock Exchange can mitigate the degree of earnings management that are conducted by firm managers. The result of this research on the Whole indicates that the institutional ownership and the audit quality can function as constraint on manager behaviour to do earnings management. Keywords: Institutional Ownership, Audit Quality and Earning Management