The Effect of Good Corporate Governance Mechanism on Earnings Management in Lq-45 Companies
The Effect of Good Corporate Governance Mechanism on Earnings Management in Lq-45 Companies

Summary/Abstract: This study aims to determine the effect of good corporate governance mechanisms consisting of board size. the board of directors, the independence of the board of commissioners, the size of the audit committee, the expertise of the audit committee and the type of auditor on earnings management in companies indexed by LQ-45 for the 2016-2018 period. This study uses multiple linear regression analysis techniques. The results of the analysis in this study indicate that the expertise of the audit committee is able to reduce the level of earnings management in the company. However, this research is unsuccessful in showing that the size of the board of directors, the independence of the board of commissioners, the size of the audit committee and the type of auditor are able to influence earnings management. These results imply the importance of an expert audit committee to be able to improve the quality of financial reporting, which is indicated by low earnings management.

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