Pengguna laporan keuangan menginginkan laporan yang andal dan tepat waktu karena keterlambatan penyampaian keuangan dapat menyebabkan kesalahan dalam mengambil keputusan ekonomi. Tujuan penelitian ini adalah untuk mengetahui pengaruh kinerja keuangan yang diukur melalui profitabilitas, solvabilitas, likuiditas, ukuran perusahaan, dan faktor lainnya yaitu reputasi auditor dan komite audit terhadap audit report lag dan peran ukuran perusahaan sebagai pemoderasi pengaruh tersebut. Data dari laporan keuangan perusahaan non-keuangan yang terdaftar di Bursa Efek Indonesia (BEI) periode 2016 hingga 2020 digunakan dalam penelitian ini dan melalui metode purposive sampling didapatkan 140 perusahaan yang memenuhi kriteria yang telah ditentukan. Data diolah menggunakan moderated regression analysis dengan hasil pengolahan terhadap 700 data menunjukkan bahwa profitabilitas dan likuiditas, berpengaruh terhadap audit report lag dan ukuran perusahaan memoderasi pengaruh likuiditas terhadap audit report lag dan juga memoderasi pengaruh ukuran komite audit terhadap audit report lag.

Objective - The purpose of this research is to obtain empirical research on the effect of corporate governance on earnings management in distressed and non-distressed companies. Corporate governance in this research is measured by independent board, audit committee, board of commissioners, institutional ownership and number of board commissioner meetings. The research predicts that corporate governance has a negative effect on earnings management either both in distressed and non-distressed companies. Methodology/Technique - This research uses 309 manufacturing companies listed on the Indonesian Stock Exchange and the data was obtained using purposive sampling method during 2016 until 2018. Of the 309 respondents in the sample, 287 are distressed companies and 22 are non-distressed companies. The data was analyzed using a multiple regression method. Findings - The empirical results show that commissioner board and institutional ownership have a negative effect on earnings management in non-distressed companies but in distressed companies, corporate governance does not have an effect on earnings management. This research shows that distressed companies, corporate governance cannot minimize earnings management practices because to maintain the company as a going concern, management will do earnings management to ensure stakeholders’ trust to encourage further investment in the company. In non-distressed companies, corporate governance can minimize earnings management practices because the company is in a good financial condition, so they don’t need to do earnings management. Additionally, in order to ensure stakeholders’ trust, the company will strengthen its’ corporate governance mechanisms. Type of Paper: Empirical. JEL Classification: M41, M43, G34, J33, K22. Keywords: Financial Distress; Earnings Management; Non-Financial Distress; Indonesia Stock Exchange. Reference to this paper should be made as follows: Theresia; Indrastuti, D. K; Alexander, N. (2021). Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies, Accounting and Finance Review, 5(4): 23 – 30. https://doi.org/10.35609/afr.2021.5.4(3)

The purpose of this study is to analyze the impact of public accountant firm size, auditor specialization, company size, operating cash flow, leverage, return on assets, market to book value ratio, independent commissioners and firm age on earnings management. Purposive sampling method is used to obtain samples from manufacturing companies that listed in Indonesian Stock Exchange during 2015-2018. There are 71 companies meet the criteria and the hypothesis was tested using multiple linear regression analysis. The results indicate that company size, operating cash flow, leverage and return on assets have a significant effect on earnings management. Other independent variables such as public accountant firm size, auditor specialization, market to book value ratio, independent commissioners and firm age have no influence on earnings management.

One important part of the company's financial statements is earnings because it provides information to stakeholders about the company's performance. Earnings are used to evaluate management and one of the determinants of the amount of management compensation and to estimate the company's prospects in the future. Earnings management is a practice used by businesses to enhance financial statements over time. The purpose is to attract the attention of users of financial statements to make decisions on investing and granting credit. Therefore, the aim of this study is to determine whether independent commissioners, independent audit committee, audit committee expertise, activity audit committee, size audit committee, leverage, and firm size affect earnings management. This study uses non-financial companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2020 period as research objects. The sample selection method used is purposive sampling. The results of this study indicate that leverage and firm size have a positive effect on earnings management. The higher the leverage, the higher the risk of default on the debt owned by the company, among other things because there is an element of uncertainty in business conditions. This is avoided by investors and is a factor that causes the company's management to practice profit management to beautify its financial reports company size has a positive effect on earnings management because large companies will tend to carry out earnings management so that the company is still considered good by investors. While independent commissioners, audit committee size, audit committee independence, audit committee expertise, and audit committee activities have no effect on earnings management.