Effect of Firm Size and Corporate Governance Practice Earning Management
Abstract: The purpose of this
study demonstrate empirically the effect of firm size proxied by total assets
and total sales as well as corporate governance mechanisms are proxied by the
proportion of independent directors, the size of the board of directors and
audit committee size of the earnings management practices in companies listed
on the Indonesia Stock Exchange. This population is the entire manufacturing
companies listed in Indonesia Stock Exchange from 2009 to 2013 years. Companies
that were sampled 24 companies and the number of observations made during the
years 2009 to 2013 are 120 items observation. Methods of data analysis in this
study using multiple linear regression. Based on the test results obtained by
the value of R2 value of 0.516, which means, 51.6% of earnings management
variables can be explained by the variable size of the company, the proportion
of independent directors, the size of the board of directors, and the size of
the audit committee. While the remaining 48.4% is explained by other factors
that are not tested in the research. Based on the results of statistical tests
showed that only the variable size of the board of directors who have no effect
on earnings management, whereas the variable total assets, number of sales, the
proportion of independent directors and audit committee size negatively affect
earnings management.
Penulis: Chairul Anwar,
Damabrata Anugrah
Kode Jurnal: jpakuntansidd150621
