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


The Effect of CEO Tenure, Managerial Skills and Earning Power on Earnings Manipulation with Corporate Governance as a Moderating Variable on Manufacturing Companies in Indonesia Stock Exchange

Author(s): Vinola Herawaty, Dita Solihah

The purpose of this research is empirically to find out the effect of CEO tenure, managerial skills and earning power with corporate governance as a moderating variable on earnings manipulation. Controlling variables are firm size and leverage. This research uses panel data with probitmodelbecause dependent is qualitative and discrete, while the independent variables with the scale ratio. The research is done by using manufacturing companies listed on the Indonesia Stock Exchange during 2012-2016 as a sample. Sample determination is done by using purposive sampling method. The total sample of this research are 240 manufacturing companies. Based on the hypothesis testing result, it can be concluded that CEO tenure and managerial skills have positive effects on earning manipulation, while, earning power and corporate governance have negative effects on earnings manipulation. Corporate governance only strengthens the negative effect of earning power on earnings manipulation.