Managerial Ability and Monitoring Structure as a Mechanism for Improving the Quality of Earnings and the Value of the Firms Listed In Indonesia Stock Exchange

The objective of this research is to examine the role of managerial ability and monitoring structures as a mechanism to improve\ud the earnings quality and the value of the firms listed in Indonesia???s Stock Exchange locall y called Bursa Efek Indonesia (BEI). The sample\ud used in this study was particularly all non-financial companies listed in Indonesia???s Stock Exchange. The sample was selected by purposive\ud random sampling method. The number of sample collected was 178 companies. By using path analysis method, the results show that the\ud managerial ability has positive and significant effect on the earnings quality and the value of the firm. Secondly, foreign ownership has no\ud effect on the earnings quality, but it has a negative and significant effect on the value of the firm. Thirdly, the independent audit committee\ud has a negative and significant effect on the earnings quality, but it has no effect on the value of the firm. Fourthly, the audit quality has a\ud positive and significant effect on the earnings quality and the value of the firm. Fithly, the earnings quality has no effect on the value of the\ud firm. In addition, by using Sobel test, it was found that there was no mediating effects from the earnings quality in mediating the\ud managerial ability and monitoring structures