MEKANISME CORPORATE GOVERNANCE, MANAJEMEN LABA DAN KINERJA KEUANGAN (Studi Pada Perusahaan Go-Publik Sektor Manufaktur)

Abstract

The principal purpose of this study was to examine the influence of corporate governance
mechanism with earnings management and influence concequensies of earnings management
to financial performance. Measurement of corporate governance mechanism consist of: institutional
ownership, managerial ownership, presence of independent of director and size of director.
Institutional ownership, manajerial ownership and presence of independent of director can
affect the action of earning management, which caused in the use of discretionary accruals into
the lower. Whereas the small size of director would be more effective in performing supervisory
action of earnings management. Earnings management is conducted by managers on firm
fundamental factors, namely the nterventon on making of financial statement based on accrual
accounting. So that eranings management will affect performed by managers on the factors
- fundamental factors the company, by intervention in the preparation of financial statements
based on accrual accounting. So that earnings management will affect financial performance.
The populations of this research is all of companies in the manufacturing sector at the Indonesian
Stock Exchange, which were published in financial report from 2005-2007. Purposive sampling
method was used to determine research sample. From this method, we have collected 37
observations.
By using multiple regression analysis as the research method, the findings are: manajerial ownership
influence negatively to earnings management and size of director influence positively to
earning management as hypothesized. Institutional ownership and presence of independent
of director had not significant influence to earnings management. Earning management have
significant effects on financial performance.
Keywords: corporate governance mechanism, eearnings management and financial performance