Meutia, Inten and Isnurhadi, Isnurhadi (2019) The Effect of Corporate Governance and Corporate Diversification on Earnings Management. Modern Economics, 14. pp. 7-12. ISSN 2521-6392
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Abstract
Introduction. This research was conducted to examine the effect of corporate governance and corporate diversification on earnings management. The total sample of this study was 81 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2012-2016. Data analysis was conducted by using regression panel data which was previously tested to determine the effect in the panel regression estimation model. The Purpose. The purpose of this research was to measure and analyze the effect of corporate governance (projected by institutional ownership, managerial ownership and the proportion of independent commissioners) and corporate diversification (projected by industrial diversification) on earnings management. Results. From the results of the data processing, the model was estimated using the Fixed Effect Model (FEM). R2 value was 43.53% and based on the F test it was stated that corporate governance and corporate diversification affect earnings management. The results of the t test showed that institutional ownership, managerial ownership, and the proportion of independent commissioners have no effect on earnings management. Industrial diversification affects earnings management. Conclusions. Based on the results of analysis and testing of the effects of corporate governance and corporate diversification on earnings management in manufacturing companies listed on the Indonesia Stock Exchange (IDX), it can be concluded that institutional ownership and managerial ownership have no effect on earnings management while the proportion of independent commissioners and industrial diversification variables has an effect on earnings management.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | 01-Faculty of Economics > 62201-Accounting (S1) |
| Depositing User: | Dr Inten Meutia |
| Date Deposited: | 17 Jul 2022 22:09 |
| Last Modified: | 17 Jul 2022 22:09 |
| URI: | http://repository.unsri.ac.id/id/eprint/73954 |
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