Antecedents and Consequence of Good Corporate Governance

DOI

10.2991/icobame-18.2019.35How to use a DOI?

Keywords

earnings management; good corporate governance; profitability; company size; leverage

Abstract

The purpose of this study is to examine the antecedents and consequence of good corporate governance (GCG). Antecedent factors considered in this study namely profitability, company size, and leverage, while the consequence of GCG is earnings management. The research data were obtaining from 90 companies listed in the Corporate Governance Perception Index during the period 2013-2016 using purposive sampling method. Hypothesis were testing using multiple regression analysis to determine the effect of antecedent factors of GCG and simple regression analysis to determine the consequence effect of GCG. The results showed that profitability does not influence GCG, company size has a significant positive effect on GCG, and leverage has a significant negative effect on GCG. Moreover, GCG has a significant positive effect on earnings management. Company size and leverage has influence GCG practice and next have impact on earnings management, but the effect of leverage on good corporate governance and its impact on earnings management is not as expected, the direction of influence is reversed even though it is significant. The result had implication that firms performing earnings management could be seen by its size and leverage because both had impact on GCG practice and GCG had an impact on earnings management.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jacobus Widiatmoko
AU  - Moh. Irsad
AU  - Vitara Arta Ciputri
PY  - 2019/07
DA  - 2019/07
TI  - Antecedents and Consequence of Good Corporate Governance
BT  - Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
PB  - Atlantis Press
SP  - 159
EP  - 163
SN  - 2352-5428
UR  - https://doi.org/10.2991/icobame-18.2019.35
DO  - 10.2991/icobame-18.2019.35
ID  - Widiatmoko2019/07
ER  -