The Moderating Effect of Corporate Governance on the Relationship between Earnings Management and Firm Value: Indonesian Evidence

DOI

10.2991/aicar-18.2019.25How to use a DOI?

Keywords

corporate governance; earnings management; firm value

Abstract

The purpose of this paper is to investigate the moderating effect of corporate governance on the relationship between earnings management and firm value. Using a sample of 177 Indonesian listed nonfinancial firms during the year 2015, this paper finds that corporate governance mechanism, as represented by the proportion of independent directors, has a negative and significant moderating effect on the relationship between earnings management and firm value. This finding might indicate that the presence of independent directors reveals more about the opportunistic side of earnings management conducted by firms, and therefore punished accordingly with lower valuation by the capital market.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Iman Sofian Suriawinata
AU  - Tomas Augusto Correia
PY  - 2019/02
DA  - 2019/02
TI  - The Moderating Effect of Corporate Governance on the Relationship between Earnings Management and Firm Value: Indonesian Evidence
BT  - Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)
PB  - Atlantis Press
SP  - 121
EP  - 125
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicar-18.2019.25
DO  - 10.2991/aicar-18.2019.25
ID  - Suriawinata2019/02
ER  -