THE EFFECT OF PROFITABILITY AND GOOD CORPORATE GOVERNANCE ON EARNINGS QUALITY

  • Rani Aprilian Fakultas Ekonomi dan Bisnis, Universitas Lampung
  • Kiagus Andi Universitas Lampung
  • Yunia Amelia Fakultas Ekonomi dan Bisnis, Universitas Lampung
DOI: https://doi.org/10.23960/jak.v25i1.238
Keywords: Profitability, Good Corporate Governance, Earnings Quality, and Discretionary Accrual.

Abstract

This study aims to examine the effect of profitability and good corporate governance on earnings quality in food and beverage companies listed on Indonesia Stock Exchange (IDX) 2015-2018 period. Profitability is calculated using Return on Assets (ROA). The proxy of Good Corporate Governance are institutional ownership, managerial ownership, audit committee, and independent commissioner. The dependent variable in this study is earnings quality measured by discretionary accrual using Modified Jones Model to detect earning management.

 This study used secondary data from the official website of Indonesian Stock Exchange (www.idx.co.id) and the sampling method in this study uses purposive sampling method. The data analysis in this study using multiple linear regression analysis. The results of this study indicate that profitability and audit committee have a positive effect on earnings quality, while the independent commissioner has a negative effect on earnings quality. Other independent variables i.e. institutional ownership and managerial ownership have no significant effect on earnings quality

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Published
2020-01-20
How to Cite
Aprilian, R., Andi, K., & Amelia, Y. (2020, January 20). THE EFFECT OF PROFITABILITY AND GOOD CORPORATE GOVERNANCE ON EARNINGS QUALITY. Jurnal Akuntansi Dan Keuangan (JAK), 25(1), 13-27. https://doi.org/https://doi.org/10.23960/jak.v25i1.238
Issue
Vol 25 No 1 (2020): Volume 25 Number 1, Januari 2020
Section
Articles

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