PENGARUH CORPORATE GOVERNANCE DAN RASIO UTANG TERHADAP EARNINGS MANAGEMENT

Abstract

Earnings management is management actions in the process of preparation
of financial statements to affect the level of reported earnings. Earnings management
can reduce the credibility of the financial statements if it is used to make decisions,
because earnings management is a form of manipulation of financial statements.
This study aimed to examine the effect of corporate governance and leverage to
earnings management. The sample in this study were 81 companies listed on the
Indonesian Stock Exchange for the period 2011-2013. Sampling using purposive
sampling method. The analysis technique used in this study is factor analysis and
multiple linear regression analysis. The results showed that the variables of corporate
governance negatively affect earnings management. While the variable leverage a
positive effect on earnings management.