THE EFFECT OF GOOD CORPORATE GOVERNANCE ON PROFIT MANAGEMENT IN PROPERTY AND REAL ESTATE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX) IN 2018 – 2020

Abstract

This study aims to examine the effect of good corporate governance as proxied by managerial ownership, institutional ownership, foreign ownership, and independent commissioners partially on earnings management. The number of samples for this research is 60 data from 20 property and real estate sector service companies listed on the Indonesia Stock Exchange for the period 2018-2020 which were obtained using the purposive sampling method. This study uses descriptive statistical analysis techniques, classical assumption tests, multiple regression analysis, and hypothesis testing. The results of this study indicate that managerial ownership has a negative effect on earnings management, institutional ownership has a negative effect on earnings management, foreign ownership has a negative effect on earnings management and independent commissioners have a negative effect on earnings management.