PENGARUH UKURAN PERUSAHAAN DAN GOOD CORPORATE GOVERNANCE TERHADAP PRAKTIK MANAJEMEN LABA

Abstract

Profit management is a problem in a company which is originates from a conflict of the importance between the owner (principal) and the manager (agent). Weak supervision and monitoring within the company will make it easier for managers to carry out the profit management.  Therefore, a corporate governance mechanism is needed to supervise the practices of profit management. This research aims to test and obtain empirical evidence of the effect of firm size, institutional ownership, independent commissioners, and the board of directors on profit management. The population in this research are manufacturing companies listed on the Indonesia Stock Exchange in the 2016-2018 period. Determination of the sample using purposive sampling method and obtained as many as 42 samples of manufacturing companies. The data analysis technique used is the classical assumption test, goodness of fit test and multiple linear regression analysis. The results showed that the variable institutional ownership, independent commissioners, and the board of directors had no effect on profit management.  Meanwhile, firm size and audit committee variables have a negative effect on profit management.