Implementation of Corporate Governance Mechanism and Earnings Management On Jakarta Islamics Index (JII) and LQ-45 Index
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The purpose of this study examines the impact of Corporate Governance mechanism i.e institutional ownership, managerial ownership, size of board committee, independence of board committee, and the audit committee to earnings management. The earnings management is measured by integrated model. The research samples are 271 companies listed in Sharia and Conventional Index during the periods 2004 - 2010. Descriptive qualitative used to measure the mean value of these proxies. The multiple linear regression analysis used to examine the impact of Corporate Governance mechanism and the type of index to earnings management. The results showed that Corporate Governance Mechanism has variation impact to earnings management. Independence of board committee, audit committee, and the type of index has an effect significantly to earnings management. In the future, researcher will continue this model by looking for the relationship earnings management with another variable such as the Corporate Governance perception index and relevance of accounting information should be used as Corporate Governance measurement for giving the results more accurate.