PENGARUH CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA DI INDUSTRI PERBANKAN INDONESIA

This study aims to examine the effect of corporate governance on earnings management practices in the banking industry that are listed in the Indonesia Stock Exchange (ISX). Corporate Governance Mechanisms used in this study is the internal mechanism. The population used in this study is a banking company public limited company and the national private banking companies listed on the Indonesia Stock Exchange (ISX) in 2008-2010. Research data obtained from ISX and Indonesian Capital Market Directory (ICMD) where there are 31 companies listed on the Stock Exchange of banking during the period 2008-2010. Sample selection is done by purposive sampling method. Of the sampling method, collected 66 observations from 24 companies that went public banking / 3 years. By using simple regression analysis as a method of research, the results showed that the mechanism of corporate governance have an insignificant effect on earnings management in banking companies go public are detected by using a specific model of accrual of Beaver and Engel (1996). The results of these studies indicate that the mechanism of corporate governance by the banking company is not effective in reducing earnings management practices. Therefore, based on the results of this study concluded that corporate governance mechanisms do not work effectively in improving the performance of the banking company. Keywords: Corporate Governance, Internal Mechanisms, Earnings Management