DAMPAK TATA KELOLA PERUSAHAAN DAN DIVERSIFIKASI INDUSTRI PADA MANAJEMEN LABA

Abstract

Earnings management impairs the transparency and reliability of financial statements and could mislead the financial decision of the users of financial statements. This research is aimed to provide additional empirical evidence on the impact of the good corporate governance implementation (measured by managerial ownership, audit committee competence and external audit quality) and industry diversification on earnings management. This research used 111 manufacturing companies listed in the Indonesia Stock Exchange during 2017 - 2019. Hypothesis testing is carried out through panel data regression. The research found that the competence of the audit committee is statistically proven in contrasting the earnings management. On the other hand, managerial ownership, external audit quality and industry diversification do not have any significant influence on the earnings management.