The Effect of Good Corporate Governance and Financial Distress on Real Earnings Management

Abstract

This research aims to analyze the effect of good corporate governance and financial distress on real earnings management. The sample in this study is a manufacturing company listed on Indonesia Stock Exchange for the 2016-2020 period. Data collection in this study was carried out using secondary data taken from the company's financial statement. The data were analyzed and tested using the SPSS 25 program to test descriptive statistics and outlier tests. The Smart PLS 3.0 program was used to test validity and reliability, test quality indexes, and test hypotheses. The results of this study indicate that institutional ownership has a significant effect on real earnings management, managerial ownership has no significant effect on real earnings management, family ownership has no significant effect on real earnings management, the audit committee has a significant effect on real earnings management, audit quality has a significant effect on management. Financial distress has a significant effect on real earnings management. The moderating variable in this study proves that family ownership has no significant effect on real earnings management which is moderated by political connections.

Pengaruh Good Corporate Governance Dan Financial Ratios Terhadap Financial Distress Perusahaan Perbankan

“…Menurut Yopie & Erika (2021), kepemilikan manajerial memiliki peran yang cukup besar dalam mempengaruhi keputusan dan perkembangan perusahaan. Hal ini dapat terjadi karena pemilik saham dari kepemilikan ini berasal dari pihak internal perusahaan seperti kepemilikan saham oleh dewan direksi atau dewan komisaris dari perusahaan.…”

Effect of Good Corporate Governance and Gender Diversity on Earnings Management in Indonesia

“…The research conducted by (Yopie & Erika, 2021) which shows that institutional ownership has a negative effect on earnings management. According to Juita (2021), who used sampled from manufacturing businesses during the period of 2017-2019 proved that institutional ownership has no effect on earnings management, this can be explained by the fact that institutional owners are more related to current income than to future income.…”

Duty of Civilians Security Agencies that Suffer Losses Due to Civil Corruption

“…Officially, the Commissioner and the Board of Supervisors are in charge of monitoring the company's discretion and advising the Management (Yopie & Erika, 2021). The Commissioner and the Board of Supervisors are bound to apply the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and obligation in the performance of their duties.…”