Good Corporate Governance, Leverage, Firm Size And Earning Management Evidence from Indonesia

The purpose of this study is to analyze the effect of Good Corporate Governance, Leverage and Firm Size on Earning Management in manufacturing companies listed on the Indonesia Stock Exchange for the period 2015 to 2019. The study involves secondary data in the form of annual financial reports from...

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Bibliographic Details
Published inInternational journal of commerce and finance Vol. 7; no. 2; p. 165
Main Authors Surjandari, Dwi Asih, Minanari, Minanari, Nurlaelawati, Lela
Format Journal Article
LanguageEnglish
Published Istanbul Istanbul Commerce Üniversity, Faculty of Social Sciences 01.10.2021
Subjects
Corporate governance
Indonesia
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Summary:The purpose of this study is to analyze the effect of Good Corporate Governance, Leverage and Firm Size on Earning Management in manufacturing companies listed on the Indonesia Stock Exchange for the period 2015 to 2019. The study involves secondary data in the form of annual financial reports from 66 companies that meet the criteria obtained from the IDX website and the research object is Good Corporate Governance, Leverage, Firm Size as the independent variable and Earning Management as the Dependent variable. The analysis uses regression with E-views version 11.0. The results showed that all independent variables represented by Good Corporate Governance, Leverage and Firm Size had a weak effect on Earning Management and partially, only Leverage had a significantly negative effect on Earning Management. The implication of this research, is that the parties who concern with the limitation of Earning Management activities supposed to consider Leverage in their decision making.
ISSN:2149-9608