PENGARUH PENERAPAN MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP EARNING MANAGEMENT DI DALAM PERUSAHAAN PERTAMBANGAN PADA BURSA EFEK INDONESIA

EFFECT OF APPLICATION OF GOOD CORPORATE GOVERNANCE MECHANISMS TO Earning MANAGEMENT IN MINING COMPANY (Case Study in Mining Companies listed on the Indonesia Stock Exchange) By: EKKY IRAWAN PUTRA Abstract The company was founded with the aim of increasing corporate value through increased prosperity owners or shareholders. Parties manager as the manager of corporate managers have different goals, especially in terms of improving individual performance and compensation to be received. Ketisejajaran interest to encourage the emergence of deviant behavior of managers is one form of earnings management activity (earnings management). In line with his hard drive investors will increase the quality of financial information and the Indonesian government began to implement Good Corporate Governance (GCG) as a sound corporate governance. Good corporate governance include managerial ownership, independent commissioners, audit committees, and institutional ownership. This study aims to find empirical evidence that good corporate governance mechanisms to reduce the practice of earnings management in listed Mining Company in Indonesia Stock Exchange. The sample used in this study is 8 mining companies listed in Indonesia Stock Exchange during the period 2007 to 2010. While the types of data used are secondary data, and sources of data come from PT. Indonesia Stock Exchange and the Faculty of Economics (FE), UPN Veteran East Java. Data were analyzed using multiple linear regression analysis techniques. From the results of Model Suitability Test or Test F shows that the resulting regression model fit in order to see the impact of managerial ownership, independent commissioners, audit committees, and institutional ownership on earnings management practices, but on the basis of the Partial Test or t test showed that only for variables audit committee which is partially significant effect on earnings management practices, while managerial ownership variables, independent commissioners, and institutional ownership is partial no significant effect on earnings management practices by mining companies listed in Indonesia Stock Exchange, that hypotheses are proposed, no verified. Keyword: Managerial Ownership, the Independent Commissioner, Audit Committee, Institutional Ownership, and Profit Managemen