Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)

Antecedents and Consequence of Good Corporate Governance

Authors
Jacobus Widiatmoko, Moh. Irsad, Vitara Arta Ciputri
Corresponding Author
Jacobus Widiatmoko
Available Online July 2019.
DOI
10.2991/icobame-18.2019.35How to use a DOI?
Keywords
earnings management; good corporate governance; profitability; company size; leverage
Abstract

The purpose of this study is to examine the antecedents and consequence of good corporate governance (GCG). Antecedent factors considered in this study namely profitability, company size, and leverage, while the consequence of GCG is earnings management. The research data were obtaining from 90 companies listed in the Corporate Governance Perception Index during the period 2013-2016 using purposive sampling method. Hypothesis were testing using multiple regression analysis to determine the effect of antecedent factors of GCG and simple regression analysis to determine the consequence effect of GCG. The results showed that profitability does not influence GCG, company size has a significant positive effect on GCG, and leverage has a significant negative effect on GCG. Moreover, GCG has a significant positive effect on earnings management. Company size and leverage has influence GCG practice and next have impact on earnings management, but the effect of leverage on good corporate governance and its impact on earnings management is not as expected, the direction of influence is reversed even though it is significant. The result had implication that firms performing earnings management could be seen by its size and leverage because both had impact on GCG practice and GCG had an impact on earnings management.

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/).

Download article (PDF)

Volume Title
Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
July 2019
ISBN
10.2991/icobame-18.2019.35
ISSN
2352-5428
DOI
10.2991/icobame-18.2019.35How to use a DOI?
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/).

Cite this article

TY  - CONF
AU  - Jacobus Widiatmoko
AU  - Moh. Irsad
AU  - Vitara Arta Ciputri
PY  - 2019/07
DA  - 2019/07
TI  - Antecedents and Consequence of Good Corporate Governance
BT  - Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)
PB  - Atlantis Press
SP  - 159
EP  - 163
SN  - 2352-5428
UR  - https://doi.org/10.2991/icobame-18.2019.35
DO  - 10.2991/icobame-18.2019.35
ID  - Widiatmoko2019/07
ER  -