THE ROLE OF INVESTOR PROTECTION MODERATION IN THE EFFECT OF CORPORATE GOVERNANCE ON EARNINGS QUALITY

This study aims to examine the role of investor protection moderation on the effect of corporate governance on the quality of earnings. The population of this study was 50 non-financial companies listed on the ASEAN country Stock Exchange covering the countries of Indonesia, Malaysia, Philippines, Singapore, and Thailand during 2011-2015. This study uses a purposive sampling method, with a total sample of 250 companies. The data analysis technique used is moderated regression analysis. The results of this study state that investor protection strengthens the influence of corporate governance on the quality of earnings that is proxied by earnings management. Based on the results of testing, it was found that moderation in protection of investors with corporate governance can improve supervision and monitoring of financial reporting policies carried out by management so that the better the legal system in a country and the better implementation of corporate governance in the company, the minority investors easier to control to the management of financial reporting policies and decision-making related to accounting policies so that it can put pressure on management and management to be careful in reporting company finances which in turn affect the quality of earnings