The Analysis of Effects of Voluntary Disclosure to the Relationship Between Corporate Governance and Earnings Management
2015
Fauzi Fauzi, Anuar Sanusi

Metrics

  • Eye Icon 248 views
  • Download Icon 57 downloads
Metrics Icon 248 views  //  57 downloads
The Analysis of Effects of Voluntary Disclosure to the Relationship Between Corporate Governance and Earnings Management Image
Abstract

This study is aimed at examining the relationshipbetween corporate governance mechanisms andearnings management with voluntary disclosure(voluntary disclosure) as a moderating variable.Corporate governance is proxied and measured byManagerial Ownership (MGR) Institutional Ownership(INST), board size (BSIZE), and the independentCommissioner (KI). Voluntary Disclosure of EarningsManagement proxied in this study uses the value ofdiscretionary accruals, and Voluntary Disclosure isproxied by the disclosure index. The population of thisstudy is all listed manufacturing companies in IndonesiaStock Exchange from 2006 to 2011.The results of this study are first, there is an empiricalevidence to suggest that there are negative effects ofdiscretionary accruals managerial ownership,institutional ownership and a positive influence on thesize of the board of directors. Overall, these results areconsistent with research conducted by Pranata (2003)and Rajgopal (1998) that managerial ownership andinstitutional ownership become a constraint on earningsmanagement practice. Second, testing the relationshipbetween voluntary disclosure mechanism betweencorporate governance and discretionary accruals indicatethat the earnings management practices will be carriedout if the company is getting a lot of information. Theseresults are consistent with the research conducted byAryati (2003). Third, the composition of theindependent commissioner was not statisticallysignificant to the earnings management measures, andvoluntary testing of these revelations on the relationshipbetween the practice of earnings management andcorporate governance mechanisms remains to show thatthe composition of an independent commissioner is notsignificant. This gives evidence that the ineffectivenessof the company's independent commissioner.

Full text
Show more arrow
 
More from this conference
M-learning Application For Computer Networking Subjects
M\u002Dlearning Application For Computer Networking Subjects Image
The Development of E-governance-based Quality in the Universities
The Development of E\u002Dgovernance\u002Dbased Quality in the Universities Image
🧐  Browse all from this conference

Metrics

  • Eye Icon 248 views
  • Download Icon 57 downloads
Metrics Icon 248 views  //  57 downloads