ANALYSIS THE IMPACT OF INSTITUTIONAL OWNERSHIP, INDEPENDENT COMMISSIONER AND AUDIT QUALITY TO EARNINGS MANAGEMENT (EMPIRICAL STUDY IN THE MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE PERIOD 2010 – 2014)

Abstract

The research aim to examine the impact of institutional ownership, independent commissioner and audit quality to earnings management in manufacturing companies listed in Indonesia Stock Exchange period 2010 until 2014. The researcher wants to identify whether the independent variable have the negative impact to dependent variable by analyzing the annual report of the company posted in Indonesia Stock Exchange. This research uses quantitative methodology which is collected the data from the annual report of the company in website of Indonesia Stock Exchange. The samples used in this research is 18 consumer goods companies in manufacturer company listed in Indonesia Stock Exchange, which is determined by using purposive sampling. The test used in this research is the classical assumption test and hypothesis test with multiple linear regression method. The result of this research shows that the institutional ownership and audit quality have significant and negative impact to the earnings management. Meanwhile, the independent commissioner does not have significant and negative impact to earnings management.