Open AccessCorporate Governance Implications For Earnings Quality
Author(s) -
Sri Layla Wahyu Istanti,
Agung Juliarto
Publication year - 2019
Publication title -
international journal of engineering and advanced technology
Language(s) - English
Resource type - Journals
ISSN - 2249-8958
DOI - 10.35940/ijeat.e1094.0585c19
Subject(s) - corporate governance , leverage (statistics) , business , earnings quality , earnings , accounting , audit committee , debt , audit , earnings per share , quality (philosophy) , finance , accrual , philosophy , epistemology , machine learning , computer science
Earnings is an indicator of corporate performance evaluation. This study examines the role of leverage and corporate governance on earnings quality in banking companies in Indonesia. The results of the study indicate that higher leverage reduces the Earnings Quality. The high level of leverage indicates that the company has a large burden to pay off debt, so that it influences financial performance, especially profits. This model is consistent with previous empirical research. The age of firm, the proportion of commissioners’ board and the number of audit committees as the implications of Corporate Governance have no significant effect on earnings quality. This research model is not consistent with the results of previous studies on the effect of corporate governance on Earnings Quality.