The influence of good corporate governance on profit management: A case study of Sharia Commercial Banks registered in financial services authority

Ahliyah, An Nisa’ Sakinatul and Setyaningsih, Nina Dwi (2024) The influence of good corporate governance on profit management: A case study of Sharia Commercial Banks registered in financial services authority. Proceeding ICONIES, 10 (1). pp. 711-722. ISSN 2476-9851

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Abstract

Profit is a key indicator of a company's performance, with higher profits reflecting better performance.
Management may engage in earnings management to meet profit targets. To mitigate the risks of
fraudulent earnings management, effective corporate governance is essential. This study
investigates the impact of the board of commissioners' size, independent commissioners, Sharia
supervisory board, audit committee, and company size on earnings management. The sample
consists of 14 Islamic Commercial Banks registered with the Financial Services Authority from 2013
to 2020, selected using purposive sampling. Hypothesis testing results using the T test reveal that
the board of commissioners' size does not significantly impact earnings management (significance
level of 0.256). The independent commissioner variable positively and significantly affects earnings
management (significance level of 0.000). The Sharia Supervisory Board has no significant impact
on earnings management (significance level of 0.964). The audit committee variable also shows no
significant effect (significance level of 0.844), and the firm size variable does not affect earnings
management (significance level of 0.238).

Item Type:	Journal Article
Keywords:	Good Corporate Governance; Board of Commissioners Size; Independent Commissioner; Sharia Supervisory Board; Audit Committee; Company Size; Earnings Management
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics
Divisions:	Faculty of Economics > Department of Accounting
Depositing User:	Nina Dwi
Date Deposited:	31 Oct 2024 10:06

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