The Effects of Good Corporate Governance and Earning Management on Company Financial performance (Case Study of BUMN Companies Registered on the IDX for the 2017-2021)
Keywords:Good Corporate Governance, Earning Management, Corporate Financial Performance, BUMN Company
AbstractFinancial performance has several aspects that can influence stakeholder assessment indicators within the company. Assessment indicators that affect financial performance as the dependent variable are corporate governance and earnings management carried out by the company. Good corporate governance is the key that every company needs to apply to be able to compete and obtain financial performance. Earnings management is often an issue that needs to be addressed by every company to create financial performance and assessment by stakeholders. This study aims to examine the effect of good corporate governance and earnings management on the company's financial performance. This study differs from previous research by involving 2 independent variables, namely corporate governance and earnings management, on the dependent variable, namely financial performance. In addition, this research takes case studies of BUMN companies whose majority ownership is owned by the government. The period of financial report data used in this research is 2017-2021. The corporate governance mechanisms tested in this study are managerial ownership, institutional ownership, independent commissioners and audit committees. While the company's earnings management is measured using the Modified Jones model. This study also measures financial performance using Profitability ratios, namely ROE (Return On Equty) which is an indicator of a company's ability to generate returns on investment made by shareholders. Sampling in this study used a purposive sampling technique with certain criteria. The research was conducted using 20 samples of state-owned companies listed on the Indonesia Stock Exchange with a sample of multisector companies. In finding the results o
Dahlia. (2020). The Effect of Earnings Management Before and After the Initial Public Offering on the Company's
Financial Performance. Thesis.
Dechow, P. M RG Sloan, and AP Sweeney. 1995. Detecting Earnings Management. The Accounting Review, 70(2).
Hair et al. 2018. Multivariate Data Analysis.
Hamidi, M., Drevets, WC, & Price, JL (2004). Glial Reduction In Amygdala In Major Depressive Disorder Is Due To
Oligodendrocytes. Biological Psychiatry, 55(6), 563–569.
Hery. 2015. Financial Statement Analysis. Edition 1. Yogyakarta: Center For Academic Publishing Services
Holly, Anthony; Lukman. 2021. The Effect of Managerial Ownership, Institutional Ownership and Profit Management
on Financial Performance. Makassar's Atma Jaya University.
Jensen, MC, & Meckling, W. (1976). Theory of the Firm: Managerial Behavior, Agency Costs And Ownership
Structure. Journal of Financial Economics, Vol 3. No 4.
Kuncoro, Mudrajad. (2013). Quantitative Research Methods 3rd Edition. Erlangga : East Jakarta .
Mahadwartha, PA, & Hartono, J. (2002). Agency Theory Test in Interdependence Relationship Between Debt Policy
and Dividend Policy. National Symposium on Accounting, 5
Murwaningsari, Etty. 2009. Corporate Governance Relations, Corporate Social Responsibilities and Corporate
Financial Performance in One Continuum. Journal of Accounting and Finance, Vol. 11, no. 1, pp: 30-41.
Nuryadi, N., Astuti, TD, Sri Utami, E., & Budiantara, M. (2017). Fundamentals of Research Statistics. Busyku Media.
Raharjaputra, Hendra S. 2011. Financial Management and Accounting. Jakarta: Salemba Empat.
Scott, William U R, 2006, Financial Accounting Theory Fourth Edition. New Jersey :Prentice -Hall, Inc.
Subramanyam, K. (1996). The Pricing Of Discretionary Accruals. Journal of Accounting and Economics, 22(2).
Sulistyanto, and Wibisono, Haris. 2003. Seasoned Equity Offerings: Between Agency Theory, Windows Of
Opportunity, and Decreased Performance. Taken from the educational article site network.
Susiana and A. Herawaty. (2007). Analysis of the Influence of Independence, Corporate Governance Mechanisms,
and Audit Quality on the Integrity of Financial Statements. National Symposium on Accounting X. Makassar.
How to Cite
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.