The Effects of Corporate Governance, Firm Size and Leverage to Earnings Management on Manufacture Firm in Indonesia Stock Exchange Period 2017-2019
Earnings management is a behavior or action taken by manager
to manipulate accounting data or information so that the amount of profit recorded in the financial statements is good. Earnings management is carried out to influence decisions made by stakeholders and the results of contractual agreements based on the amount of profit. This study aims to test and obtain empirical evidence of the effect of independent board structure, institutional ownership, managerial ownership, firm size and leverage on earnings management in manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2019.The sample selection was done by using a purposive sampling method. The data analysis technique used in multiple linear regression analysis. Data population in this study were all manufacturing companies listed on the Indonesia Stock Exchange for the period 2017-2019, totaling 152
companies. The sample in this study were 47 companies with 141
companies observed.The results of this study indicate that the variable composition of the independent board of commissioners and managerial ownership has a negative effect on earnings management, while institutional ownership, firm size and leverage have no effect on earnings management.