The Effect of Asymmetry Information and Corporate Governance Mechanism on Earning Management in Companies Listed in the Islamic Index Period of Jakarta 2015–2018

DOI

10.2991/aebmr.k.200309.018How to use a DOI?

Keywords

earnings management, asymmetry information, corporate governance mechanisms

Abstract

The aims of this research to determine the effect of information asymmetry and corporate governance mechanisms that proxied by institutional ownership, managerial ownership, and audit committee on the earnings management occurred in companies listed in Jakarta Islamic Index over the period 2015–2018. This study used purposive sampling method. These samples contained in JII are 14 companies. The data is secondary data from financial statement, annual reports, and stock historical price that are accessed through the official website of IDX: http://www.idx.co.id. Data analysed by using multiple linear regression that processed using software Eviews version 10. The result of this research concluded that (1) Information asymmetry has no effect on earnings management that information asymmetry is not a factor that encourages management to take opportunistic actions (2) Institutional ownership has negative effect on earnings management which indicates that greater ownership of shares owned by institutional parties does lead to greater oversight efforts to prevent earnings management (3) Managerial ownership has negative effect on earnings management which indicates that the greater shareholding owned by management does reduce management’s own actions in carrying out earnings management; (4) Audit committee has a positive effect on earnings management that the presence of the audit committee effectively prevents the improvement of earnings management in the company.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nursanita Nasution
AU  - Diana Hapsari Putri
AU  - Faris Faruqi
PY  - 2020
DA  - 2020/03/12
TI  - The Effect of Asymmetry Information and Corporate Governance Mechanism on Earning Management in Companies Listed in the Islamic Index Period of Jakarta 2015–2018
BT  - Proceedings of the Annual International Conference on Accounting Research (AICAR 2019)
PB  - Atlantis Press
SP  - 78
EP  - 81
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200309.018
DO  - 10.2991/aebmr.k.200309.018
ID  - Nasution2020
ER  -