Research Paper
Year: 2018 | Month: October | Volume: 5 | Issue: 10 | Pages: 49-66
The Influence of Good Corporate Governance, Leverage, and Profitability on Earning Management with Firm Size as Moderating Variable in the Banking Companies Listed In Indonesia Stock Exchange in the Period of 2012-2016
Anisa Fitri1, Iskandar Muda2, Badaruddin2
1Postgraduate Students at the Department of Economics and Business, University of North Sumatra, Indonesia
2Postgraduate Lecturer at the Department of Economics and Business, University of North Sumatra, Indonesia
Corresponding Author: AnisaFitri
ABSTRACT
The objective of the research was to know the effect of Good Corporate Governance, leverage, profitability on earnings management with firm size as a moderating variable. The research used associative causal method. The population was 30 banking companies listed in BEI (the Indonesia Stock Exchange) in the period of 2012-2016. The samples were 30 observational data, taken by using census sampling technique. The hypothesis was tested by using semPLS analysis. The result of the research showed that, institutional ownership and managerial ownership had negative and significant influence on earnings management, while independent board of commissioners and audit committee had positive but insignificant influence on earnings management. Leverage had negative and insignificant influence on earnings management. Profitability positive and significant influence on earnings management. Firm size as moderating variable could not moderate the correlation of Good Corporate Governance, leverage, profitability on earnings management.
Key words: Earnings Management, Good Corporate Governance, Leverage, Profitability, Firm Size
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