INFLUENCE OF INFORMATION ASYMMETRY ON THE PRACTIC EARNINGS MANAGEMENT IN MANUFACTURING COMPANY WHICH IS LISTED ON INDONESIA STOCK EXCHANGE

The purpose of this research was to examine empirically the influence of independent variable information asymmetry, control variable firm size and leverage on the earnings management. Sample used in this research was the manufacture firms that are listed in Indonesia Stock Exchange which was collected through purposive judgement sampling method, for an observation period of 2004 up to 2008. Based on stated criterions, there were 53 companies becoming the research sample. In this research, hypotheses were examined by multiple regression analysis at degree of certainty 95% and degree of error 5%. Before analyze with multiple regression linier analysis, there was a discriminant test and classic assumption test.\ud \ud The result of empirical examination using multiple regression analysis shows that, individually, independent variable information asymmetry, control variable firm size and leverage had influence significant on the earnings management. Simultaneously, independent variable information asymmetry, control variable firm size and leverage had influence significant on the earnings management\u