Earnings Management : Empirical Evidence on Determinants in Indonesia

Abstract

Earnings management is a way to present earnings adjusted to the goals desired by managers and is done through the selection of accounting policies or through accrual management. This study aims to determine the effect of leverage, tax planning, size and good corporate governance mechanisms on earning management. The sample of this research is the manufacturing companies in the consumer goods industry sector which are listed on the Indonesia Stock Exchange in 2015 - 2017 totaling 23 companiesThe results of the study that Leverage, Tax Planning, Size and Audit Committee have a significant effect on Earning Management, while independent commissioners have no significant effect on earnings management

Keywords: Earning Management, Leverage, Tax Planning, Size, Good Corporate Governance mechanisms, Audit Committee, Independent Commissioner

DOI: 10.7176/EJBM/12-3-04

Publication date: January 31^st 2020