Research Article
The Effect of Good Corporate Governance and Financial Distress on Earnings Management
@INPROCEEDINGS{10.4108/eai.19-9-2023.2340509, author={Lisa Ai’sah and Arfan Ikhsan and Azizul Kholis}, title={The Effect of Good Corporate Governance and Financial Distress on Earnings Management}, proceedings={Proceedings of the 8th Annual International Seminar on Transformative Education and Educational Leadership, AISTEEL 2023, 19 September 2023, Medan, North Sumatera Province, Indonesia}, publisher={EAI}, proceedings_a={AISTEEL}, year={2023}, month={12}, keywords={managerial ownership institutinal ownership audit comittee independent commisioners financial distress earning management}, doi={10.4108/eai.19-9-2023.2340509} }- Lisa Ai’sah
Arfan Ikhsan
Azizul Kholis
Year: 2023
The Effect of Good Corporate Governance and Financial Distress on Earnings Management
AISTEEL
EAI
DOI: 10.4108/eai.19-9-2023.2340509
Abstract
The objective of this research is to investigate the impact of managerial ownership, institutional ownership, audit committee, independent commissioners, and financial distress on earnings management within the manufacturing sector of businesses listed on the Indonesia Stock Exchange over the year of 2020-2021. The assessment is grounded on the theoretical framework of Agency Theory. The study's sample consists of 32 manufacturing enterprises, and data analysis is conducted using the method of multiple linear regression analysis. The possibilities proposed in the research are: The presence of managerial ownership has a notable adverse impact on the practice of earning management. 2) The presence of institutional ownership has a noteworthy favorable impact on earnings management. 3) The impact of the audit committee on earnings management is not considerable. 4) The presence of independent commissioners has a notable adverse impact on the practice of earning management. The impact of financial crisis on earnings management is not shown to be statistically significant.