The Effect of Financial Distress and Corporate Governance on Earnings Management

Abstract

The purpose of this research is to analyze the effect of financial distress and corporate governance toward earnings management. The samples of this research consist of 131 non-financial companies that are listed on the Indonesia Stock Exchange from the years 2014 to 2017 by using purposive sampling method. The hypothesis was tested by using multiple regression analysis with REVIEWS. The results of the research showed that financial distress, managerial ownership, institutional ownership and auditor independence had no influence on earnings management.