Main Article Content
Abstract
Earning management (EM) exists as an impact of accrual basis. Based on Agency Theory,
earning management problems can be reduced by self-control of corporate governance
(CG) mechanism. The purpose this study is to analyze the difference of the CG mechanism
and EM between those in accordance with syari’ah index (JII) and conventional index
(LQ-45). Samples consist of 89 and 39 companies listed in Bursa Efek Jakarta (BEI) from
2004 to 2007. The result indicates that the EM practice on the conventional index (0.4027)
is higher than syari’ah index (0.2337). The regression analysis shows that the board of
commissioner size has positive impact on the EM significantly in main model and conventional
index model, but not in shari’ah model. The managerial ownership has negative
impact on the EM significantly in conventional index model, but not in syari’ah model.
Keywords: earning management, corporate governance, impact, conventional index, syari’ah
index.
earning management problems can be reduced by self-control of corporate governance
(CG) mechanism. The purpose this study is to analyze the difference of the CG mechanism
and EM between those in accordance with syari’ah index (JII) and conventional index
(LQ-45). Samples consist of 89 and 39 companies listed in Bursa Efek Jakarta (BEI) from
2004 to 2007. The result indicates that the EM practice on the conventional index (0.4027)
is higher than syari’ah index (0.2337). The regression analysis shows that the board of
commissioner size has positive impact on the EM significantly in main model and conventional
index model, but not in shari’ah model. The managerial ownership has negative
impact on the EM significantly in conventional index model, but not in syari’ah model.
Keywords: earning management, corporate governance, impact, conventional index, syari’ah
index.
Article Details
License
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
How to Cite
Trisnawati, R. (2012). Perbedaan Mekanisme Corporate Governance dan Praktik Manajemen Laba: Studi Komparasi Indeks Syari’ah dan Indeks Konvensional di Bursa Efek Indonesia. Unisia, 32(72). https://doi.org/10.20885/unisia.vol32.iss72.art2
