Pengaruh Proporsi Komisaris Independen Dan Komposisi Komite Audit Terhadap Earnings Management (Studi Pada Pyramid Company Di Bursa Efek Indonesia)

Makhdalena Makhdalena
Journal article Universitas Tarumanagara Journal of Accounting • 2012 Indonesia

Abstract

The bankruptcy of giant companies in the early 2000s due to accounting manipulation (earnings management). Earnings management is also happening in companies listed on the Indonesia Stock Exchange. And this makes accounting experts focused on independent commissioners and audit committee. The experts agree that an independent commissioner and the audit committee is an important issue related to earnings management through a substance that can be provided by the independent commissioners and audit committee. Earnings management can be reduced if it is supported by the proportion of independent and adequate audit committee composition. Based on these ideas, the researchers interested in conducting research that aims to determine the effect of the proportion of independent commissioners and audit committee composition to earnings management. The study was conducted on a conglomerate listed on the Indonesia Stock Exchange, amounting to 37 companies and all researched. The data used in this study is secondary data obtained from the annual report. Data were analyzed  using path analysis. The results showed that the effect of the proportion of independent commissioners and audit committee composition on earnings management in conglomerate listed on the Indonesia Stock Exchange simultaneously is at 0013 while the rest of 0987 (1-0013) is influenced by other factors beyond the studied variables such as CEO compensation, capital market, block holders, the managerial labor market and internal control. Partially, the proportion of independent commissioners had no effect on earnings management, while the composition of the audit committee has very little impact on earnings management, which only amounted to 0013.

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Journal

Universitas Tarumanagara Journal of Accounting

Jurnal Akuntansi Untar (Universitas Tarumanagara Journal of Accounting) is an open access, peer-r... see more