Research Paper
Year: 2018 | Month: August | Volume: 5 | Issue: 8 | Pages: 113-121
The Effects of Good Corporate Governance and Bonus Compensation Onearnings Management with Firm Size as a Moderating Variable in the Consumer Goods Companies Registered in Indonesia Stock Exchange
Endang Pratiwi, Ade FatmaLubis, Rina Bukit
Universitas Sumatera Utara
Corresponding Author: Endang PratiwiABSTRACT
The aims of this study were to find out and analyze the effects of good corporate governance which consists of managerial ownership, institutional ownership and audit committee and bonus compensation to earnings management with firm size as a moderating variable in the consumer goods companies registered in Indonesia Stock Exchange. This type of study was a causal associative research. The data was a secondary data in the form of financial statements derived from the Indonesia Stock Exchange site. The population was all consumer goods companies registered in Indonesia Stock Exchange in 2014-2016. The total population was 35 companies. The entire population was selected to be sampled by the census method. Because of the observation in the study was taken from 2014 to 2016, the number of observationwas as many as 105 observations. The methods of data analysis applied the multiple linear regression analysis and residual test for testing moderating variable. The results showed that institutional ownership and audit committee had a significant effect on earnings management while managerial ownership and bonus compensation had no significant effect on earnings management. Moderating test with residual test showed firm size was not able to moderate the effects of managerial ownership, institutional ownership, audit committee and bonus compensation on earnings management in the consumer goods companies registered in Indonesia Stock Exchange.
Key words: Managerial Ownership, Institutional Ownership, Audit Committee, Bonus Compensation, Earnings Management, Firm Size
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