Analysis of the influence of the expertise of public auditors, the percentage of the number of independent commissioners, and the percentage of institutional ownership on earnings management in consumer goods industry sub-sector companies in the 2006-2008
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Published:
Mar 30, 2022
Keywords:
Auditor Public Expertise; Earnings Management; CompositionOfIndependent Commissioner; CompositionOfInstitutional Ownership; CorporateGovernance Mechanisms; ownership.
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Articles
Statistics Article
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Abstract
The objectives of this research are to find out empirical evidence of the effect of corporate governance mechanisms on earnings management. The corporate governance mechanisms of this research are auditors with public expertise, composition of independent commissioners and composition of Institutional Ownership. Earning management was estimated by the Utami model. The target population was listed companies in the goods consumption industry sector at the Indonesia Stock Exchange period of 2006-2008. The sample is determined based on purposive sampling method. There were 30 companies meeting the criteria. The research hypothesis was tested using multiple regression analysis. The results of this research show that: (1) auditor public expertise has a significantly negative influence on earnings management; (2) composition of Institutional Ownership had significantly negative influence on earnings management; (3) composition of independent commissioners had no influence on earnings management. The additional result is that the earnings management of the firms which have the competency of the independent commissioners is lower than the earnings management of the firms which have the incompetence of the independent commissioners.
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How to Cite
Hutama, D. R. (2022). Analysis of the influence of the expertise of public auditors, the percentage of the number of independent commissioners, and the percentage of institutional ownership on earnings management in consumer goods industry sub-sector companies in the 2006-2008. Indonesia Auditing Research Journal, 11(1), 34–43. Retrieved from https://journals.iarn.or.id/index.php/ARJ/article/view/59
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Rahmawati, Yacob Sumarno, Nurul Qamariyah. 2006. The Effect of Information Asymmetry on Profit Management Practices of Public Banking Companies Listed on the Jakarta Stock Exchange. National Symposium on Accounting IX, Padang. Ratmono, Dwi and Nur Cahyonowati. 2005. Earnings-Based Market Anomalies and Abnormal Accruals Persistence. National Symposium on Accounting VIII, Solo. Indonesian Accountants Association.
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ON BOND RATINGS AND BOND YIELD”.
Agung Rai, I Gusti. (2008). "Performance Audit in the Public Sector". Salemba Empat, Jakarta.
Anderson, David R., Dennis J Sweeney, Thomas A. William. (2002). “Statistics for Business and Economics 8e”. South-Western, a division of Thomson Learning, Inc.
Astuti, Dewi SP (2006). “Analysis of Factors Influencing Lab Management Motivation in Regarding, Right. ssue”.,http://ejurnal.unud.ac.id/abstrak/dewi%20saptantinah%20puji%20astuti.pdf
Capital Market Supervisory Agency. (2005). Decision of the Board of Directors of PT. Jakarta Stock Exchange Number: No.Kep-339/BEJ/07-2001 No. 1-A point C. Dated July 20, 2001.www.Bapepam.com
Belkaoui, A., et al. (1987). ”Accounting Theory”, Volume One, Erlangga, (IKAPI Member), Jakarta.
Budiarto, Arif, and Zaki Baridwan (January 1999), "The Influence of Right Issue Announcement on Profit Levels and Liquidity of Shares on the Jakarta Stock Exchange", Indonesian Journal of Accounting Research (JRAI), pp. 91-116.
Dalan, Muhammad. 2009. "Analysis of the Relationship Between Audit Quality and Discretionary Accruals and Auditor Freedom". Accounting journal. Department of Accounting, University of Padjadjaran, Bandung.
D. Santoso, MN Huda, Ak., MH, CFE. (2005). “LINKS SARBANES OXLEY ACT, SAS NO. 99, AND CORPORATE GOVERNANCE: WHAT THINGS WE NEED TO KNOW”.
Gideon SB Boediono. (2005). Earnings Quality: Study of Effects of Corporate Governace Mechanisms and Impacts of Earnings Management Using Path Analysis. National Symposium on Accounting VIII, IAI, 2005.
Ghozali, Dr. Priest. 2005. "Applications of Multivariate Analysis with the SPSS Program". Publishing Agency: Dipenogoro University, Semarang.
Healy, PM and JM Wahlen. 1999. A Review of the Earnings Management Literature and Its Implications for Standard Setting. Accounting Horizons 13(4): 365-383.
Herawaty, Vinola. (2007). "The Role of Corporate Governance Practices as a Moderating Variable of the Influence of Earnings Management on Firm Value". Postgraduate Program in Accounting, University of Indonesia, Yakarta.
Indonesian Accountants Association. (2009). "Principles of Financial Accounting Standards". Jakarta: Salemba Empat.
Isnanta, Rudi. (2008). " THE EFFECT OF CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE ON PROFIT MANAGEMENT AND PERFORMANCE
FINANCE". Bachelor degree majoring in Accountancy at the Faculty of Economics, Indonesian Islamic University, Yogyakarta.
Juniarti and Corolina. (2005). "Analysis of Factors Influencing Profit Smoothing (Income Smoothing) in Go Public Companies", Journal of Accounting & Finance Vol 7 No. 2.
Keown, Arthur J. (2005). "Financial Management 9th edition volume 2". Gramedia: Jakarta. National Committee on Governance Policy, (2004). Guidelines Concerning Independent Commissioners.
http://www.governance-indonesia.or.id/main.htm.
Ma'ruf, Muhammad. (2006). "Analysis of Factors Influencing Earning Management in Go Public Companies in Indonesia". Faculty of Economics, Indonesian Islamic University, Yogyakarta.
Mayangsari, S. 2004. Analysis of Value-Relevance of Profits, Cash Flows, and Book Value of Equity: Analysis Around the Financial Crisis Period, VIII National Symposium on Accounting.
M. Tuanakotta, Theodorus. (2007). "Half a Century of the Accounting Profession". Salemba Empat, Jakarta.
Castle, Ginanjar. (2006). ” Leverage Influence Analysis, auditor's industry specialist, number of Independent commissioners, Institutional Ownership of Earnings Management in Manufacturing Companies on IDX”. Undergraduate Program, Diponegoro University, Semarang.
Rahmawati, Yacob Sumarno, Nurul Qamariyah. 2006. The Effect of Information Asymmetry on Profit Management Practices of Public Banking Companies Listed on the Jakarta Stock Exchange. National Symposium on Accounting IX, Padang. Ratmono, Dwi and Nur Cahyonowati. 2005. Earnings-Based Market Anomalies and Abnormal Accruals Persistence. National Symposium on Accounting VIII, Solo. Indonesian Accountants Association.
Santoso Mulyono, Djoko. (2005). “Good Corporate Culture”. PT. Elex Media Komputindo, Jakarta.
Santara, Yudi and Vianey Norpratiwi. (2003). “CORPORATE GOVERNANCE EFFECT
ON BOND RATINGS AND BOND YIELD”.
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