The Effect of Controlling hareholders on Earnings Management

• Main Authors: Debby Silvia Simangunsong, Ardianto
• Format: Article PeerReviewed
• Language: English; Indonesian; English
• Published: Primrose Hall Publishing Group 2020
• Subjects: H Social Sciences; HD28-70 Management. Industrial Management; HF5601 Accounting
• Online Access: http://repository.unair.ac.id/105328/1/Ardianto_Karil%2005_The%20Effect%20of%20Controlling.pdf; http://repository.unair.ac.id/105328/2/Ardianto_Peer%20Review005.pdf; http://repository.unair.ac.id/105328/3/Ardianto_Smilarity%2005_The%20Effect%20of%20Controlling.pdf; http://repository.unair.ac.id/105328/; https://www.ijicc.net/index.php/volume-13-2020/193-vol-13-iss-8
• Institution: Universitas Airlangga

The purpose of this study is to analyse how controlling shareholders affects earnings management. This study uses observations from 865 firms listed on the Indonesia Stock Exchange during the 2015-2017 period. This study uses the Ordinary Least Square Regression analysis model with STATA 14.0 software. The results found that the entrenchment effect and alignment effect did not have a significant effect on the level of earnings management. This finding shows that controlling shareholders in both the entrenchment effect and alignment effect are not the main factors in determining earnings management