THE EFFECT OF COMPANY DIVERSIFICATION TOWARDS EARNING MANAGEMENT MODERATED BY MANAGERIAL OWNERSHIP
Abstract: This study aims to
examine the effect of diversification towards earnings management moderated by
managerial ownership. The sample in this research is 48 manufacturing companies
listed in Indonesian Stock Exchange period 2009- 2013. Purposive sampling was
utilized as a sampling technique in this study. This research used moderating
regression analysis to examine the proposed of hypothesis. The result found
that diversification has significant positive effect on earnings management.
Managerial ownership also has significant positive effect in moderating the
relationship between corporate diversification with earnings management. While
the three control variables such as company size (size), the company’s growth
(growth) and leverage have no significant effect on earnings management.
Author: Ratih Kusumaningtyas,
Reni Yendrawati
Journal Code: jpmanajemengg150042
