Analisis Dampak Discretionary Accruals Terhadap Nilai Perusahaan Yang Dimoderasi Dengan Penerapan Good Corporate Governance (GCG)

Abstract

This research examines the influence of earnings management on the value of a firm.Earnings management emphasises the importance of owners authorising the management ofcompany to professionals who understand and are capable of running business. However,this separation has a negative side, the freedom and authority of management to maximizeprofit will lead to the maximisation of management’s self-interest whilst the owners bear thecosts. This facts creats an information asymmetry between management and otherstakeholders. Discretionary accruals are utilised as the measure of earnings management.Not only does this study contribute to the examination of influence of discretionary accrualson corporate value, but it also uses a moderating variable, which is the implementation ofGood Corporate Governance (GCG). Empirically, the implementation of GCG. This researchcompares the extent to which the role of Good Corporate Governance implementation in theefforts to impede the prevalence of earnings management. Minimised earnings managementcan increase the firm value; hence, the effect of earnings management proxied bydiscretionary accruals on firm value is negatively stronger for the company implementing GCG.

Keywords: Earning management, discretionary accruals, corporate value, Good CorporateGovernance (GCG)