The Impact of Good Corporate Governance on Earning Management in Banking Listed On Bei in 2019

    Fasya Yosifa ,Yani Suryani Selamarta ,Nuryaman

    Abstract

    This research aims to^determine empirically the^effect^of good^corporate governance^on profit management. ^The size^of the Board0of0Commissioners is a proxy for good corporate governance, Expertise of the Board0of Commissioners, Meetings of^the^Board^of Commissioners, Size^of^the^Board^of^Directors, Size of the Audit0Committee, ^Expertise of the^Audit0Committee^and Meetings of the^Audit0Committee. ^The dependent variable in this research is earning0management. This research used 44 samples of Annual Bank Reports listed^on^the^Indonesia^Stock^Exchange in 2019. The^method^of^analysis data^in^this^research^is regression analysis after testing classical assumptions. The^results^of^this research indicate that^the number^of members^of^the^board0of0directors and the^number^of^audit^committees have^a^significant negative effect^on^earning^management. Meanwhile, the^number^of members of the board^of^commissioners, ^the expertise of^the^board^of^commissioners, the meeting^of^the^board^of^commissioners, ^the number^of^independent commissioners^and the meeting of^the^audit0 committee have no^significant^effect^on^earnings management. The^results^of this research indicate^that the presence of an adequate number of directors and audit0committees can reduce earnings management.

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