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KUALITAS AUDITOR EKSTERN DALAM MEMBATASI KESEMPATAN MANAJEMEN UNTUK MELAKUKAN MANAJEMEN LABA

Jurnal Keuangan dan Perbankan, Volume 13, Nomor 3, September 2009
Journal from JIPTUNMERPP / 2012-01-24 06:56:07
Oleh : Prihat Assih, Diploma 3 of Finance and Banking Merdeka University Malang (jurkubank@yahoo.com)
Dibuat : 2009-09-01, dengan 0 file

Keyword : Earnings management, positive accounting theory, external auditor quality, corporate governance.

Earnings management practice related to a variety incentives to maximize firmsÂ’ value or to increase manager welfare. Many researchers focused on 3 main incentives for earnings management practice, as explained in positive accounting theory, that were incentive to decrease cost of debt covenant default, maximize bonus and reduce political cost (Watts & Zimmerman, 1986). However, the earnings management would exist if management had incentive and opportunity to do so (Trueman & Titman, 1988; Christensen, et al., 1999). The objective of this research was to investigate external auditor quality as factor to constraining earnings management by managers. Analysis was based on 111 publicly manufacturing firms in Indonesian Stock Exchange period 2005 up to 2008. The result showed that the high level of firmsÂ’ debt motivated manager to practice more earnings management. However, the level of earnings management was lower when the quality of auditor external work was higher. The results of these researches contributed to accounting literature development especially in corporate governance. Qualified auditor, one of monitoring aspects, had function as good corporate governance mechanism for reducing management practice to manage earnings which would be costly for financial statement users.

Deskripsi Alternatif :

Earnings management practice related to a variety incentives to maximize firmsÂ’ value or to increase manager welfare. Many researchers focused on 3 main incentives for earnings management practice, as explained in positive accounting theory, that were incentive to decrease cost of debt covenant default, maximize bonus and reduce political cost (Watts & Zimmerman, 1986). However, the earnings management would exist if management had incentive and opportunity to do so (Trueman & Titman, 1988; Christensen, et al., 1999). The objective of this research was to investigate external auditor quality as factor to constraining earnings management by managers. Analysis was based on 111 publicly manufacturing firms in Indonesian Stock Exchange period 2005 up to 2008. The result showed that the high level of firmsÂ’ debt motivated manager to practice more earnings management. However, the level of earnings management was lower when the quality of auditor external work was higher. The results of these researches contributed to accounting literature development especially in corporate governance. Qualified auditor, one of monitoring aspects, had function as good corporate governance mechanism for reducing management practice to manage earnings which would be costly for financial statement users.

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PropertiNilai Properti
ID PublisherJIPTUNMERPP
OrganisasiDiploma 3 of Finance and Banking Merdeka University Malang
Nama KontakDra. Wiwik Supriyanti, SS
AlamatJl. Terusan Halimun 11 B
KotaMalang
DaerahJawa Timur
NegaraIndonesia
Telepon0341-563504
Fax0341-563504
E-mail Administratorperpus@unmer.ac.id
E-mail CKOwsupriyanti@yahoo.com

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  • Editor: Wiwik Supriyanti, Dra. SS.