PENGARUH CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA DI INDUSTRI PERBANKAN INDONESIA

This study aimed to examine the effect of corporate governance on earnings management practices in the banking industry that are listed in the indonesia stock exchange (ISX). Corporate Governance Mechanisms used in this study is board of commisioner composition, board size of commissioner, audit committee existence and company size. The population used in this study is a banking company is listed on the indonesia stock exchange (ISX) in 2011-2014. Research data obtained from ISX and indonesian capital market directory (ICMD) where there are 44 companies listed on the Stock Exchange of banking during the period 2011-2014. Sample selection is done by purposive sampling method. Of the sampling method, collected 120 observations from 30 companies that went public banking / 4 years. The results showed that the mechanism of corporate governance have an significant effect on earnings management in banking companies go public are detected by using a specific model of accrual of Beaver and Engel (1996). The results of these studies indicate that the mechanism of corporate governance by the banking company is effective in reducing earnings management practices. Therefore, based on the results of this study concluded that corporate governance mechanisms do work effectively in improving the performance of the banking company. Keywords: Corporate Governance, Board Of Commissioner, Audit Committee, Size Firm, Earning Management