AUDITOR, KUALITAS AUDIT, DAN LEVERAGE TERHADAP MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2015-2017

Abstract

ABSTRACT

Abstract: The purpose of this study is to examine the effect of good corporate governance mechanisms, auditor independence, audit quality, leverage on earnings management practices in manufacturing companies listed on the Indonesia Stock Exchange. This study uses 74 manufacturing companies listed on the Indonesia Stock Exchange. According to Sulisyanto (2008: 48) earnings management is an attempt by company managers to intervene or influence information in financial statements with the aim of knowing stakeholders who want to know the performance and conditions of the company. With the existence of earnings management activities aiming to attract investors as one of the parties interested in a company to invest funds in the company. Then in addition to the company's financial statements, it will be judged to be good if it can publish a performance report contained in Good Corporate Governance (GCG). One of the results of the study of Rajgopal et al. (1999) show that large institutional ownership and management ownership are believed to be able to limit manager's behavior in conducting earnings management.Selected using the purposive sampling method, during the 2015 to 2017 research period. Data were analyzed using multiple regression methods. The results of the analysis show that leverage, audit quality, audit committee and auditor independence have an influence on earnings management practices. This means that leverage, audit quality by audit company size and profit or loss reported by management will motivate management to practice earnings management.

Keyword : Good Corporate Governance, Leverage, Earnings Management