THE EFFECT OF CORPORATE GOVERNANCE, EARNING POWER, AND AUDITOR INDEPENDENCE ON EARNINGS MANAGEMENT
Abstract
The purpose of this study was to analyze the effect of corporate governance which includes audit committee and institutional ownership, earning power, and auditor independence on earnings management. The sample of this study uses 60 data from 12 property and real estate sector companies listed on the Indonesian stock exchange for the 2016-2020 period using the purposive sampling method . This study uses panel data regression analysis, with the analytical tool using Eviews 9. The results of this study show that simultaneously the audit committee, institutional ownership, earning power, auditor independence have an effect on earnings management. Whereaspartially institutional ownership has a negative effect on earnings management, and earning power has a positive effect on earnings management. On the other hand , the audit committee and auditor independence have no significant effect on earnings management.
Keywords: Earnings Management, Corporate Governance, Audit Committee, Institutional Ownership, Earning Power, Auditor Independence
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