International Conference on Eurasian Economies
17-18 September 2013 – St. Petersburg, RUSSIA
Paper detail
Paper ID : 597
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Prof. Dr. Euphrasia Susy Suhendra
Session : 5A Finance I
The Influence of Corporate Governance Mechanism to Earnings Management on Indonesia and China Industrial Banking
The Influence of Corporate Governance Mechanism to Earnings Management on Indonesia and China Industrial Banking
- Prof. Dr. Euphrasia Susy Suhendra (Gunadarma University, Indonesia)
- Mrs. Dini Tri Wardani (Gunadarma University, Indonesia)
Abstract
The goal of this research is to evaluate the influence of managerial ownership structure, independent board of commissioners proportion, independent commissioner size, and audit committee size on earnings management in banking industry in China and Indonesia. The data used is secondary data with discretionary accrual as earnings management proxy. Data is processed and analyzed by independent samples t-test and multiple linear regression The results of this research show that there is a difference between earnings management, managerial ownership structure, proportion independent board of commissioners, board of commissioners size in banking industry in Indonesia and China, however there is no difference between Audit Committee size. The variable of managerial ownership structure in Indonesian’s banking industry is negatively significant influence on earnings management, whereas in China has no influence. The variable of independent board of commissioners proportion in banking industry in Indonesia has no influence on earnings management, while negatively significant influence on China’s. The variable of Board of Commissioners size in Indonesia banking industry positively significant influence on earnings management, while negatively significant influence in China. Then, the variable of Audit Committee size in Indonesia banking industry negatively significant influence on earnings management, whereas positively significant influence in China.
JEL codes: O16, G24, R38
Suhendra, Euphrasia Susy, Tri Wardani, Dini (2013). "The Influence of Corporate Governance Mechanism to Earnings Management on Indonesia and China Industrial Banking" in Proceedings of International Conference of Eurasian Economies 2013, pp.144-150, St. Petersburg, RUSSIA.
DOI: https://doi.org/10.36880/C04.00597
