The Effect of Good Corporate Governance on Earnings Management (Empirical Study on Technology Companies Listed on the Indonesia Stock Exchange in the years period 2020-2022)

Abstract

The purpose of this study was to examine the effect of independent board of commissioners, managerial ownership, institutional ownership, the audit committee on earnings management. The practice of earnings management is one of the primary factors causing financial statements to no longer reflect the fundamental value of the company. The population of this study is technology companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2022, totaling 22 companies. As for the sampling technique, this study uses nonprobability sampling, specifically purposive sampling. The data was analyzed using descriptive statistics analysis, normality test, classical assumption test, and multiple linear regression analysis. The results showed that the variable of managerial ownership shows a non-significant influence on earnings management. The variable of institutional ownership also shows a non-significant influence on earnings management. The independent board of commissioner's variable indicates a non-significant influence on earnings management. Meanwhile, the audit committee variable shows a significant influence on earnings management