The influence of good corporate governance to earnings management practices on Islamic banks in Indonesia

INDONESIA:

Penelitian ini bertujuan untuk mengetahui pengaruh mekanisme good corporate governance yang terdiri dari ukuran dewan komisaris, jumlah rapat dewan komisaris, komposisi komisaris independen, komposisi komite audit independen, jumlah rapat komite audit, kepemilikan institusional dan kepemilikan manajerial terhadap praktik manajemen laba. Manajemen laba diukur dengan akrual diskresioner.

Sampel penelitian ini adalah 24 bank syariah di Indonesia yang telah mempublikasikan annual report dan partial report pada tahun 2010 dan 2011. Metode analisis pada penelitian ini menggunakan analisis regresi linier berganda.

Hasil penelitian menyatakan bahwa ukuran dewan komisaris, jumlah rapat dewan komisaris, komposisi komisaris independen, komposisi komite audit independen, jumlah rapat komite audit, kepemilikan institusional dan kepemilikan manajerial berpengaruh tidak signifikan terhadap manajemen laba. Hal ini menunjukkan bahwa mekanisme good corporate governance gagal membatasi praktik manajemen laba bank syariah di Indonesia.

ENGLISH:

This study aimed to determine the influence of good corporate governance mechanisms proxied by the board of commissioner size, the number of the board of commissioners meeting, the independent commissioner composition, the independent audit committee composition, the number of the audit committee meeting, institutional ownership and managerial ownership to earnings management practices. Earnings management is measured using discretionary accruals.

The sample are 24 Islamic banks in Indonesia, which it has published the annual report and partial report in 2010 and 2011. This study use multiple linear regression analysis.

The results show that the board of commissioner size, the number of the
board of commissioners meeting, the independent commissioner composition, the independent audit committee composition, the number of the audit committee meeting, institutional ownership and managerial ownership have no significance effect on earnings management. It indicates that good corporate governance mechanism failed to minimize earnings management on Islamic Banks in Indonesia.