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

Yayan Nuryana; Dwi Asih Surjandari

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

Yayan Nuryana * §

Contact

Dwi Asih Surjandari

Contact

§ Mercu Buana University

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

Article Fingerprint

ReserarchID

MBRZ08VG

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

AI TAKEAWAY

Connecting with the Eternal Ground

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

21 Cites in Article

Reference Format

Arief Ujiyantho Dan,Agus Pramuka (2007). Mekanisme Corporate GovernanceE, Manajemen Laba Dan Kinerja Keuangan (Studi Pada Perusahaan go publik Sektor Manufaktur.
Astika Sari (2014). Pengaruh Good Corporate Ggovernance Terhadap Manajemen Laba.
Citrawati Jatiningrum,Mohamad,Ali Abdul-Hamid,Oluwatoyin Muse,Johnson Popoola (2015). The Impact of Disclosure Quality on Corporate Governance and Earnings Management: Evidence from Companies in Indonesia.
Adji Suratman (2016). The Role of Good Corporate Governance and Financial Reporting in Disclosure of Sustainability Report.
Fahmi (2014). Analisis Kinerja Keuangan.
Istianingsih (2016). Deteksi Manajemen Laba Melalui Discretionary Revenue dan Aktifitas Rill Implikasinya Penerapan Good Corporate Governance.
Ifada Dan Kurniawan (2011). Mekanisme Corporate Governance, Manajemen Laba Dan Kinerja Keuangan (Studi Pada.
Kurnia Susanto (2013). THE EFFECT OF CORPORATE GOVERNANCE MECHANISM ON EARNINGS MANAGEMENT PRACTICE (Case Study on Indonesia Manufacturing Industry).
Machmuddah (2015). Corporate Governance Mechanisms, Manajemen Laba Dan Kinerja Keuangan.
Mardiani Tanjung,Sucherly,Rahmat Sutisna,Sudarsono (2015). The Role Of Good Corporate Governance In Minimizing Earning Management To Increase Value Of Firm.
Nopphon Tangjitprom (2013). The Role of Corporate Governance in Reducing the Negative Effect of Earnings Management.
Novianus (2016). Unknown Title.
Hubungan Antara Ukuran Perusahaan,Leverage,Dengan Profitabilitas,Laba Manajemen,Empiris Studi,Perusahaan Pada,Yang Manufaktur (2014). Terdaftar di Bursa Efek Indonesia Tahun.
Pradipta (2011). Analisis Pengaruh Dari Mekanisme Corporate Governance Terhadap Manajemen Laba.
Rusli Riadi,Herman Tanjung Dan,Halim (2013). Pengaruh Manajemen Laba, Kinerja Keuangan Dan Size Perusahaan Terhadap Corporate Governance Perception Indek Dan Implikasinya Terhadap Pengungkapan Corporate Social Responsibility.
Asri Sulfianti,Andi Yasmon,Budiman Bela,Fera Ibirahim (2015). Cloning and Expression of HA1 Gene of H1N1 Influenza Virus 2009 Pandemic (H1n1pdm09) Indonesia Strain in the Pichia Pastoris Expression System for the Development of Influenza Vaccine.
Abubakar Shehu Usman Hassan,Ahmed (2012). Corporate Governance, Earnings Management and Financial Performance: A Case of Nigerian Manufacturing Firms.
Stephanie Lukas,B Basuki (2015). The Implementation Of Good Corporate Governance And Its Impact On The Financial Performance Of Banking Industry Listed In IDX.
Sigit Hermawan,Wiwit Hariyanto (2014). Buku Ajar Metode Penelitian Bisnis (Kuantitatif Dan Kualitatif ).
Berta Wijaya,Sheellyana Junaedi (2012). Pengaruh Aktivitas Pemasaran Media Sosial Terhadap Loyalitas Merek: Kesadaran Merek Dan Citra Merek Sebagai Mediasi.
Wulan Asri,Dan Yulianti (2014). The Effect of Corporate Governance Mechanism Toward Earnings Management to Evaluate Financial Performances of Banking Industries in Indonesia.

Download References

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.

Data Availability

Not applicable for this article.

How to Cite This Article

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

More Citation Formats

Select Citation Style:

Download Citation

GJMBR Volume 19 Issue D1

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Not Found

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

Version of record

v1.2

Issue date

January 30, 2019

Language

English

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Score: 149

Country: Indonesia

Subject: Global Journal of Management and Business Research

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

View Count (all-time): 301

Total Views (Real + Logic): 1309

Total Downloads (simulated): 76

Publish Date: 2019 01, Tue

Monthly Totals (Real + Logic):

Month 1: 35 views
Month 2: 44 views
Month 3: 49 views
Month 4: 46 views
Month 5: 49 views
Month 6: 19 views
Month 7: 38 views
Month 8: 20 views
Month 9: 29 views
Month 10: 46 views
Month 11: 29 views
Month 12: 16 views
Month 13: 20 views
Month 14: 35 views
Month 15: 16 views
Month 16: 31 views
Month 17: 40 views
Month 18: 34 views
Month 19: 30 views
Month 20: 27 views
Month 21: 39 views
Month 22: 45 views
Month 23: 30 views
Month 24: 35 views
Month 25: 33 views
Month 26: 32 views
Month 27: 23 views
Month 28: 37 views
Month 29: 25 views
Month 30: 33 views
Month 31: 26 views
Month 32: 42 views
Month 33: 27 views
Month 34: 36 views
Month 35: 35 views
Month 36: 26 views
Month 37: 35 views
Month 38: 31 views
Month 39: 44 views
Month 40: 33 views
Month 41: 21 views
Month 42: 34 views
Month 43: 18 views
Month 44: 28 views
Month 45: 14 views
Month 46: 46 views
Month 47: 15 views
Month 48: 23 views
Month 49: 27 views
Month 50: 35 views
Month 51: 47 views
Month 52: 26 views
Month 53: 26 views
Month 54: 38 views
Month 55: 19 views
Month 56: 16 views
Month 57: 35 views
Month 58: 48 views
Month 59: 29 views
Month 60: 44 views
Month 61: 16 views
Month 62: 29 views
Month 63: 21 views
Month 64: 42 views
Month 65: 24 views
Month 66: 43 views
Month 67: 30 views
Month 68: 33 views
Month 69: 25 views
Month 70: 15 views
Month 71: 20 views
Month 72: 15 views
Month 73: 30 views
Month 74: 31 views
Month 75: 18 views
Month 76: 36 views
Month 77: 34 views
Month 78: 25 views
Month 79: 36 views
Month 80: 21 views
Month 81: 32 views
Month 82: 43 views
Month 83: 26 views
Month 84: 38 views
Month 85: 41 views
Month 86: 61 views
Month 87: 42 views
Month 88: 43 views
Month 89: 43 views
Month 90: 25 views
Month 91: 56 views
Month 92: 30 views
Month 93: 34 views

Total Views: 1.3K

Total Downloads: 76

All Trends