THE EFFECT OF INDEPENDENT COMMISSIONER PROPORTION, BOARD OF COMMISSIONER SIZE, EXTERNAL AUDITOR QUALITY AND DEBT RATIO ON EARNINGS MANAGEMENT AT CONSUMER GOODS COMPANY LISTED IN INDONESIAN STOCK EXCHANGE FROM 2009 – 2013

Abstract

The objective of the research is to obtain the empirical evidence about the effect of independent commissioner proportion, board of commissioner size, and external auditor quality, and also debt to total assets ratio as financial performance on earnings management which measured by discretionary accruals method.This research used purposive sampling method. Samples in this research is all consumer goods sector’s company listed in Indonesian stock exchange from 2009 until 2013. The data is taken from company’s financial statement. This research is used multiple regression model. The result of this research shows that external auditor quality and debt to total assets ratio has significant effect on earnings management, while independent commissioner proportion and board of commissioner size has not significant influence on earnings management.