THE CHARATERISTICS OF COMMISSIONER BOARD, INDUSTRY SPECIALIZE AUDIT FIRM, EARNINGS MANAGEMENT AND VOLUNTARY DISCLOSURE
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Date
2010-10-27
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Abstract
The background fenomena of this study is the fact that high of earnings management
and low of disclosure practice on the financial reporting. The objectives of the research
are to find out empirical evidence of the effect of corporate governance mechanisms on
earnings management and its impact towards voluntary disclosure. The corporate
governance mecanisme of this research are independence of board of commissioner,
board size, competencece of board of commissioner, and audit quality. The target
population was listed companies in the manufacturing sector at the Indonesia Stock
Exchange. The sample determined based on purposive sampling methode, and in
conformity with the following criteria : (a) the annual report ended 31 December 2008 ;
(b) book value of equity is positive. There were 80 companies meeting the criteria. The
research hyphotesis were tested using multiple regression analysis.
The result of this research show that: (1) independence of board had no significanly
positive influence on earnings management, and it had no significanly positive influence on
voluntary disclosure; (2) Board size had significantly negative influence on earnings
management, and it had no significantly positive influence on voluntary disclosure; (3)
competence of board of commissioner had significantly negative influence on earnings
management, and it had significantly positive influence on voluntary disclosure.; (4) audit
quality wich measured by proxy industry specialize audit firm had no influence on earnings
management, but it had significantly positive influence on voluntary disclosure;
The conclusions of the research were : (1) size of board of commisiones can be
corporate governance mechanisms toward earnings management (2) competence of board
of commmsioners can be corporate governance mechanisms toward earnings management
and voluntary disclosure (3) audit quality can be corporate governance toward voluntary
disclosure practice
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Keywords
corporate governance mechanisms, independence of board of commissioner, board size, competencece of board of commissioner, audit quality, earnings management, management,and voluntary disclosure