Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Institutional and Managerial Ownership on Earnings Management: Corporate Governance

Author(s): Yulius Kurnia Susanto, Arya Pradipta, Irwanto Handojo

The objective of the research is to analyse about the affect of institutional and managerial ownership on earnings management. This research used 107 manufacturing companies which listed in IDX, selected by purposive sampling. Data analysis used multiple regression. The result of the paper shows that the affect of institutional ownership on earnings management is significant and negative. The affect of managerial ownership on earnings management is not significant. Institutional ownership can reduce earnings management. This shows that institutional shareholders want management to report the state of financial performance, especially profit, in accordance with the actual situation.

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