Ownership Structure and Earnings Management

Abstract

Objective - The purpose of this research is to analyze the effect of ownership structure toward earnings management.

Methodology/Technique - The population of this research consist of manufacturing companies listed on the Indonesian Stock Exchange (IDX) from 2014 to 2016. This research uses 3 recent years and adds variables that have not been used in prior research. The sample of this research is chosen using a purposive sampling method.

Finding - The hypothesis is tested by multiple regressions using an Eviews program to investigate the influence between each independent variable to earnings management.

Novelty - The hypothesis is tested by multiple regressions using an Eviews program to investigate the influence between each independent variable to earnings management.

Type of Paper - Empirical.

Keywords: Earnings Management; Ownership Structure; Institutional Ownership; Controlling Ownership; Foreign Ownership

JEL Classification: G40, G41, G49