GOOD CORPORATE GOVERNANCE ANALYSIS OF PROFIT MANAGEMENT MADE IN FINANCIAL PERFORMANCE (Empirical Study on Telecommunication Companies Registered on the Indonesia Stock Exchange for the 2013-2017 Period)

Abstract

The aim is to determine the effect of good corporate governance on mediated earnings management
with intervening financial performance. The population in this study were telecommunications companies listed
on the Indonesia Stock Exchange in 2013 - 2017.The method used is purposive sampling.
The population of this study are five telecommunication sub-sector companies as samples. The
analytical technique used is path analysis technique. Funds are analyzed using the SPSS 22 program.The results
of this study indicate that good corporate governance affects earnings management. Financial performance has
a positive effect on earnings management. After mediating with financial performance, institutional ownership,
managerial ownership, board size, the proportion of independent commissioners has a positive effect on
earnings management. Suggestions for researchers for further research are broader sampling and measurement
of the proportion of independent commissioners can use other specific proxies.
Keywords : Good Corporate Governance, ROA, Earnings management