CORPORATE GOVERNANCE, EARNINGS MANAGEMENT, AND INVESTMENT OPPORTUNITY SET OF BANKING INDUSTRY IN INDONESIA
Journal Title: Jurnal Keuangan dan Perbankan - Year 2017, Vol 21, Issue 2
Abstract
Earning management has become a common phenomenon that occurs within a company and is difficult to avoid. Earnings management can be done because managers must obey certain rules. This happens in the banking industry because the banking industry has more stringent regulations than other industries. This study aimed to examine the effect of corporate governance on earnings management with investment opportunity set as an intervening variable. The dependent variable of this research was earnings management. The independent variable of this study was the corporate governance mechanism which was proxy with the proportion of independent commissioners. The intervening variable of this study was an investment opportunity set. The samples of this study were banking companies listed on the Indonesia Stock Exchange (BEI) in 2012-2015. The analytical method used was path analysis. The results of this study indicated that corporate governance could reduce the occurrence of earnings management practices. Meanwhile, corporate governance did not affect the investment opportunity set and investment opportunity set did not influence the earnings management so that the investment opportunity set could not mediate the influence of corporate governance on earnings management.
Authors and Affiliations
Agustina Ratna Dwiati, Yulian Belinda Ambarwati
Keywords
Related Articles
- EP ID EP439623
- DOI -
- Views 118
- Downloads 0
Macroeconomic variables towards net asset value of sharia mutual funds in Indonesia and Malaysia
Sharia mutual fund as one of the investment instruments in the sharia capital market shows significant development. There are various factors that may influence, among these factors are macroeconomic variables. This rese...
Constructing a predicting model for JCI return using adaptive network-based Fuzzy Inference System
The high price fluctuations in the stock market make an investment in this area relatively risky. However, higher risk levels are associated with the possibility of higher returns. Predicting models allows investors to a...
SEMAKIN BERAGAM SEMAKIN BAIK? ISU KEBERAGAMAN GENDER, KEUANGAN, DAN INVESTASI PERUSAHAAN
This research aimed at investigating the impact of gender diversity on financial performance and investment efficiency in public companies listed in Indonesia Stock Exchange. As there was an increase in the number of wom...
APAKAH DIVERSITAS GENDER MEMENGARUHI STRUKTUR MODAL? BUKTI EMPIRIS DI INDONESIA
The purpose of this study was to know the effect of gender diversity on capital structure. Gender diversity was measured with the existence and proportion of female directors in a firm. The capital structure was measured...
The Global Economic Crisis and Its Impact on Bank Lending in Indonesia
This study examined the impact of the crisis on bank lending in Indonesia. The crisis was also interacted with profitability and liquidity to see the impact of profitability and liquidity during the global economic crisi...