Untitled

Abstract

This study aims to determine the influence of good corporate governance mechanism proxied with managerial ownership, institutional ownership, independent board of commissioners and audit committee, profit management condition as measured by discretionary accruals and financial performance as measured by return on assets mining company period 2012-2016. The sample are 11 companies. This research uses descriptive and verificative method using panel data regression analysis. The result shows that good corporate governance mechanism has significant effect to profit management at 53%. Partially managerial ownership has no effect on earnings management while institutional ownership, independent board of commissioner have significant influence to earnings management. Good corporate governance mechanism has a significant effect on financial performance of 26%, Partially managerial ownership, institutional ownership and independent board of commissioners have no effect on financial performance, while audit committee has an effect.

Good Corporate Governance and Financial Performance: A Case of Indonesian Consumer Goods Industry

“…This is in line with research conducted by Marini and Marina (2017), Setiawan and Setiadi (2020) and Adi and Suwarti (2022) which concluded that the number of audit committees in the company does not guarantee that the company's financial performance will improve. This result is different from the research conducted by Abduh and Rusliati (2018), Suryanto and Refianto (2019) and Amelinda and Rachmawati (2021) which concluded that the audit committee affects the company's financial performance.…”

“…The results of this study are in line with previous research conducted by Marini and Marina (2017), Abduh and Rusliati (2018) and Setiawan and Setiadi (2020) which concluded that the independent board of commissioners has an influence on financial performance as measured using ROA. Meanwhile, this study is different from the results of research conducted by Suryanto and Refianto (2019), Sari et al, (2019) and Adi and Suwarti (2022) which concluded that the more independent commissioners, the company's financial performance did not increase because the duties of the independent board of commissioners can only provide advice and have little impact on the company's financial statements.…”

“…This is because the audit committee is tasked with monitoring financial reports, internal control systems, and external audits. The audit committee has been shown to have an effect on financial performance (Abduh and Rusliati, 2018;Suryanto and Refianto, 2019;Adi and Suwarti, 2022). Having a supervisory audit committee in place will improve the company's financial performance since greater oversight leads to better financial performance.…”

“…The financial statements show the company's financial position and condition. The financial position and condition of a company can change in each period according to the ongoing activities in the company (Abduh and Rusliati, 2018). In this study, the ratio used is Return on Asset (ROA) which is a ratio that shows the result (return) on the number of assets used in the company.…”

PENGARUH TATA KELOLA PERUSAHAAN DAN LEVERAGE TERHADAP MANAJEMEN LABA (Studi Empiris Pada Perusahaan Sektor Industri Dasar dan Kimia yang terdaftar di Bursa Efek Indonesia Periode 2014-2018)

“…Kepemilikan manajerial adalah jumlah kepemilikan atas saham oleh pihak manajemen dari seluruh modal saham perusahaan (Abduh & Rusliati, 2018). Penelitian yang dilakukan oleh Cahyadi dan Mertha, (2019) menyatakan bahwa kepemilikan manajerial berpengaruh negatif terhadap manajemen laba.…”