EARNINGS MANAGEMENT THROUGH REAL ACTIVITIES MANIPULATION AND CORPORATE GOVERNANCE MECHANISM MODEL
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Date
2016-07
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INFORMATION, An International Interdisciplinary Journal, International Information Institute, Vol.19, No.7A
Abstract
Managers tend to do earnings management through real adtivities compared to the accrual earnings
management. The purpose of this study was to examine the effect of corporate governance mechanisms to
earnings management through real activities. The research sample number 9 1 companies industry manufacturing
sector listed on the Indonesia Stock Exchange (BEI) in 2010. Results of the research showed that: The
institutional ownership, the composition of the Board of Commissioners, and the Audit Quality, has proven to
be able to control and reduce earnings management practices through the real activities manipulation.
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Keywords
Earnings Management Through Real Activities, Corporate Governance Mechanism