PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP PRAKTIK MANAJEMEN LABA MELALUI AKTIVITAS RIIL

Abstract

This research aims to analyze the effectiveness of the characteristics of audit committee to curb real earnings management practice, which is possible conducted by company management’s. Audit committee characteristics are the special attribute of audit committee that can be used to restrain real earnings management. Real earnings management is an activity that conducted by the management of the companies to change the structuring of normal operation activity to boost current period earnings. Real earnings management practice could be done by three major activities, i.e. sales manipulation, reduction of discretionary expenses, and overproduction. This research was conducted by using secondary data from financial report and annual report that issued by public companies. Companies that are used as the sample are companies which have been listed in the Indonesia Stock Exchange since 2011 and the periode of this research starts from 2011-2014. The number of samples that had been used in this research are 50 companies with the total number of observations are 200 companies. The analysis tool’s that had been used in this research is the multiple regression analysis. This research finds the evidence that audit commitee characteristics, i.e audit committee’s competency, average tenure of the chairman of audit committee, and audit committee’s size, do not have an impact on real earnings management through sales manipulation, reduction of discretionary expenses, and overproduction. Audit comiittee’s member with overload directorship does not has an impact on real real earning management through sales manipulation. Meanwhile, audit committee’s member with overload directorship does have a positive impact on real earnings management through reduction of dicretionary expenses and has a negative impact on real earnings management through overproduction.