Authors : Lita Yulita Fitriyani, Sutoyo , Sri Suryaningsum and Vivin Marlita Rohmawati
Abstract: This research aims at identifying the influence of information asymmetry, independent commissioner board, audit committee, managerial ownership and firm size to the earnings management. Information asymmetry is measured using relative bid-ask spread; independent commissioner board is measured using the percentage of independent commissioner members from the total commissioner board in the company; audit committee is measured using dummy variable; managerial ownership is measured using the percentage in the share capital owned by the management from the total capital of the company; firm size is measured using natural logarithm of the total assets and earnings management is measured using. The modified Jones model to calculate the discretionary accrual. This research employs the sample from the manufacture companies listed in Indonesia stock exchange in 2013-2015 observation period of 55 companies. The sampling conducted is purposive sampling technique. Analysis method used is multiple linear regression. Based on the hypothesis testing using multiple linear analysis method in this research, it can be concluded that partially, the information asymmetry and managerial ownership has significant influence on the earnings management. Meanwhile, simultaneously, it is proved that information asymmetry, independent commissioner board, audit committee, managerial ownership and firm size has significant influence on the earnings management of the manufacture companies listed in Indonesia Stock Exchange.
Lita Yulita Fitriyani, Sutoyo , Sri Suryaningsum and Vivin Marlita Rohmawati, 2018. The Influence of Information Asymmetry, Independent Commissioner Board, Audit Committee, Managerial Ownership and Firm Size on Earnings Management. Journal of Engineering and Applied Sciences, 13: 8148-8152.