Corporate Governance Characteristics of Profit Management and Corporate Characteristics as Moderators (Empirical Study of Manufacturing Companies Listed on Indonesia Stock Exchange)
Profit Management is the action of a manager by presenting reports to increase or decrease the current period's profits from the business unit for which is his responsibility, without causing increase or decrease in the economic profitability of the unit in the long run. The purpose of this study is to examine the effect of corporate governance proxy by the Independent Board of Commissioners, Institutional and Audit Committee Ownership of Profit Management and Company Characteristics as a moderating company for basic and chemical industry companies listed on the Indonesia Stock Exchange in 2015-2018. The sample used in this study is consisted of 80 samples of basic and chemical industry companies listed on the Indonesia Stock Exchange (IDX) during the 2015-2018 periods. The sample was selected using the purposive sampling method. Earnings management is proxied by Discretionary Accrual using the Modified Jones Model. The data collection method uses secondary data. Data analysis is used in this study with descriptive statistical analysis, classic assumption test and multiple linear regression analysis.The results showed that the independent board of commissioners influenced earnings management, institutional ownership has no effect on earnings management, and the audit committee influences earnings management. The results of this study also prove the company's characteristics moderate the influence of the independent board of commissioners on earnings management, company characteristics moderate the effect of institutional ownership on earnings management, and company characteristics also cannot moderate the influence of the audit committee on earnings management.