PERAN PRAKTEK CORPORATE GOVERNANCE SEBAGAI MODERATING

VARIABLE DARI PENGARUH EARNINGS MANAGEMENT TERHADAP NILAI

PERUSAHAAN

Vinola Herawaty

Dosen Universitas Trisaktidan mahasiswa Pasca Sarjana Program Ilmu Akuntansi Universitas Indonesia

The objective of the empirical studi is to examine the role of Corporat Governance Practises as a variabel that moderates the effect of Earnings Management to the value of the firm and to answer the effectinessness of Corporate Governance Practises in controlling the company’s management’s ability with Earnings Management that affect the Firm Value. Four proxies used for Corporate Governance Practices are Manajerial Ownership, Institusional Ownership, Outside Independent Director, Audit Quality. Company size is use as a control variable. The value of the firm is measured by using proxy Tobin’s Q Model. The analysis method used is Ordinary Least Square, t-test and F-test. The sample of this empirical study is the company that listed in Jakarta Stock Exchange in the period of 2004-2006. The result gives the evidence that Corporate Governace Practises that have a signifikan impact to the value the firm are Outside Independent Director and Institusional Ownership, in the model regression with moderating variable. It also indicates that Outside Independent Director, Audit Quality and Institusional Ownership are moderating variables of the relationship between Earnings Managementt and the value of the firm, but not the Manajerial Ownership. Thus, Earnings Management can be minimized with the monitoring mechanism i.e. (1) Outside Independent Director that can monitor the management of the company in aligning the interest of principal and agent, (2) Institusional Ownership shareholders - the sophitisticed investor that also monitor the management to decrease the motivation of management to manipulate Earnings and (3) Audit Quality with the role of auditors to give the credibility of the reported financial statement by management. The result also shows that Manajerial Ownership does not represent the moderating variable of the realtionship between Earnings Management and Firm Value, it proves that the role of manajerial ownership is not significant to minimize the management’s ability to manipulate Earnings that affects the Firm Value

Keywords: Corporate Governance, Earnings Management, Manajerial Ownership, Outside Independent Director, Institusional Ownership, dan Audit Quality..