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The Analysis of Effects of Good Corporate Governance on Earnings Management in Indonesia with Panel Data Approach

Author

Listed:
  • Iskandar Muda

    (Department of Accounting, Faculty Economics and Business, Universitas Sumatera Utara, Medan, North Sumatera, Indonesia.)

  • Weldi Maulana

    (Faculty Economics and Business, Universitas Sumatera Utara, Medan, North Sumatera, Indonesia.)

  • Hasan Sakti Siregar

    (Department of Accounting, Faculty Economics and Business, Universitas Sumatera Utara, Medan, North Sumatera, Indonesia.)

  • Naleni Indra

    (Department of Accounting, Faculty Economics and Business, Universitas Sumatera Utara, Medan, North Sumatera, Indonesia.)

Abstract

The research was aimed to analyze effects of Good Corporate Governance, comprising of Composition of Commissioners & Audit Committee on earnings management an Empirical Study on Indonesia Stock Exchange with Panel Data Approach. The data collection method used was documentation. The samples in this research were in Indonesia registered in Indonesia Stock Exchange. The data analysis method employed panel data regression analysis with E-Views Software. The results demonstrate that Good Corporate Governance simultaneously affects earnings management. Partial testing indicates that Good Corporate Governance variable of Composition of Commissioners has no effect on earnings management & Audit Committee has no effect on Earnings Management.

Suggested Citation

  • Iskandar Muda & Weldi Maulana & Hasan Sakti Siregar & Naleni Indra, 2018. "The Analysis of Effects of Good Corporate Governance on Earnings Management in Indonesia with Panel Data Approach," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(2), pages 599-625, Spring.
    • Handle: RePEc:eut:journl:v:22:y:2018:i:2:p:599
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    References listed on IDEAS

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    1. Iskandar Muda, 2017. "The Effect of Supervisory Board Cross-Membership and Supervisory Board Members' Expertise to the Disclosure of Supervisory Board's Report: Empirical Evidence from Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 691-705.
    2. Ela Mahdaleta & Iskandar Muda & Gusnardi Muhammad Nasir, 2016. "Effects of Capital Structure and Profitability on Corporate Value with Company Size as the Moderating Variable of Manufacturing Companies Listed on Indonesia Stock Exchange," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(3), pages 30-43, September.
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    3. Siregar, Budi Gautama & Lubis, Ade Fatma & Maksum, Azhar & Fachrudin, Fachrudin, 2018. "Analysis of Corporate Social Responsibility, Default Risk and Conservatism Effect to Earning Management with Good Corporate Governance as Moderating Variable in Manufacturing Company Whose Shares Inco," MPRA Paper 87760, University Library of Munich, Germany, revised Mar 2018.
    4. Ridwansyah & Isfenti Sadalia & Yeni Absah, 2018. "The Analysis Of The Influence Of Motivation, Competence, And Incentive Toward Employee Performance At Pt Sianjur Resort, A Housing Developer Of Oma Deli Medan, Indonesia," Junior Scientific Researcher, SC Research Publishing SRL, vol. 4(2), pages 91-106, November.
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    8. Ahmed Bouteska & Mehdi Mili, 2022. "Does corporate governance affect financial analysts’ stock recommendations, target prices accuracy and earnings forecast characteristics? An empirical investigation of US companies," Empirical Economics, Springer, vol. 63(4), pages 2125-2171, October.
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    12. Rifki Maidasari & Yeni Absah & Elisabet Siahaan, 2018. "An Analysis of the Implication of Workload and Social Support toward Burnout," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 187-198, September.
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    16. Noorul Azwin Md Nasir, 2021. "Enhancing Financial Reporting Quality through Corporate Ethics Commitment," GATR Journals afr201, Global Academy of Training and Research (GATR) Enterprise.
    17. Bengkel Ginting & M. Arif Nasution & Subhilhar & R. Hamdani Harahap, 2018. "Analysis Of Weaknesses Of Coastal Community Economy Empowerment Program (Pemp) And National Program Of Community Empowerment Of Independent Marine And Fisheries (Pnpm-Mkp) On Traditional Fishermen In ," Junior Scientific Researcher, SC Research Publishing SRL, vol. 4(1), pages 41-53, May.
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