Pengaruh Praktik Corporate Governance Terhadap Nilai Perusahaan Dengan Manajemen Laba Sebagai Variabel Intervening (Studi Kasus Pada Perusahaan Publik di Indonesia)

Abstract

The purpose of this study is to empirically examine the influence of corporate governance practices on firm value mediated by earnings management. This study uses a proxy of corporate governance practices of the role of the audit committee. The role of the audit committee consists of: the independence of the audit committee, the competence of audit committee members, and the activity of the audit committee. Liniear regression model was developed to test the hypotheses. The parameters are estimates using the pooling of data consisting of 83 companies listed in Indonesia Stock Exchange for the period 2006 to 2007. The results show that all empirical models is significant. The results showed that the independence of the audit committee and audit activity, negatively affect earnings management. The more independent audit committee members the opportunity for management to manage earnings will be smaller because of the independent audit committee is able to perform the function of monitoring the financial statements effectively so as to detect the occurance of earnings management performed by the manager of the company. The effectiveness of the monitoring functions can also be performed by the audit committee activity. The results also show that earnings management does mediate the effect of corporate governance practices on firm value. This indicates that the role of the audit committee has been able to increase the value of the company when they detect earnings management performed by the manager of the company.