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Good Corporate Governance And Earnings Management Practices: An Indonesian Cases

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  • murhadi, werner R.

Abstract

This research is done for the purpose of finding out the effect of Good Governance practice can reduce earnings management practice done by company. This research uses companies registered in manufacture sector in Indonesia Stock Exchange observation period 2005-2007 as samples. Last sample used in this research is 384 years of observation. This research uses OLS method. The result shows that only two variables have significant effect to Earning Management practice which is CEO Duality and controlling shareholder existence. Other independent variables such as independent commissioner and audit committee and also shareholder coalition outside the controlling shareholder don’t have any effect to earning management practice in the company. Control variable like coverage analyst and debt don’t have any effect either, to earning management practice existence.

Suggested Citation

  • murhadi, werner R., 2009. "Good Corporate Governance And Earnings Management Practices: An Indonesian Cases," MPRA Paper 24756, University Library of Munich, Germany, revised Nov 2009.
    • Handle: RePEc:pra:mprapa:24756
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    Cited by:

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    2. Rokiah Ishak* & Noor Afza Amran & Kamarul Bahrain Abdul Manaf, 2018. "Firm Characteristics and Financial Reporting Quality: The Moderating Role of Malaysian Corporate Governance Index," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 924-932:6.
    3. Reguera Alvarado, Nuria & Laffarga Briones, Joaquina & de Fuentes Ruiz, Pilar, 2015. "Modelos de gestión de resultados: un estudio transnacional," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(1), pages 11-19.

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    More about this item

    Keywords

    Keywords: Good Corporate Governance; Earnings Management; Coverage Analyst; Debt;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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