The Effect of Good Corporate Governance Mechanism, and Earning Management on Company Financial Performance

The Effect of Good Corporate Governance Mechanism, and Earning Management on Company Financial Performance

Yayan Nuryana

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Dwi Asih Surjandari

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Mercu Buana University

The Effect of Good Corporate Governance Mechanism, and Earning Management on Company Financial Performance

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Abstract

The purpose of this study was to examine the effect of GCG mechanisms, and earnings management on financial performance. From the good corporate governance variables, researchers used proxies to the number of board of directors, institutional ownership, managerial ownership, the proportion of independent board of directors, a number of audit committees. Also revealed the influence of earnings management on financial performance. This study uses a sample of 25 manufacturing companies listed on the Indonesia Stock Exchange by using purposive sampling that is financially published reports between 2012-2016. The method of analysis of this study uses multi-regression and single regression. The results of this study indicate that (1) Board of directors has no effect on earnings management, (2) Institutional ownership does not have a significant positive affect on earnings management, (3) Managerial ownership does not have a meaningful influence on earnings management, (4 ) The presence of the Independent Board of Commissioners has no significant effect on earnings management, (5) The size of the audit committee does not have a having a meaning or purposeaffecton earnings management, (6) Simultaneously GCG are not has a significant influence on earnings management, (7) Earnings management has no significant causal factor on financial performance, and (8) GCG mechanisms and earnings management together affect finance performance.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Yayan Nuryana. 2019. \u201cThe Effect of Good Corporate Governance Mechanism, and Earning Management on Company Financial Performance\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 19 (GJMBR Volume 19 Issue D1).

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GJMBR Volume 19 Issue D1

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-D Classification JEL Code: F65

Submission ReceivedDecember 13, 2018
Peer Review Double Blind
Handling Editor
Accepted January 4, 2019
Published January 15, 2019

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v1.2

Issue date

January 30, 2019

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Article Matrices

Total Score: 102

Country: Indonesia

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Yayan Nuryana, Dwi Asih Surjandari (PhD/Dr. count: 0)

View Count (all-time): 197

Total Views (Real + Logic): 2874

Total Downloads (simulated): 1417

Publish Date: 2019 01, Wed

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Total Views: 2874

Total Downloads: 1417

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