THE INFLUENCES OF CORPORATE GOVERNANCE AND INTELLECTUAL CAPITAL ON EARNING QUALITY IN INDONESIAN PUBLIC LISTED COMPANIES
Keywords:earning management, independent commissioner, institutional ownership, intellectual capital, earning quality
Purpose: This study is to examine the effects of earning management, independent commissioner, institutional ownership, and intellectual capital on earning quality.
Design/methodology/approach: This study is relied on annual financial statements of Indonesian firms recorded in the Indonesia Stock Exchange (IDX) by a period of 2013-2017. The type of company that becomes the focus of this research is manufacturing companies.
Findings: The results of this study provide empirical evidence that earnings management and intellectual capital have significant negative effects on earning quality. In contrast, independent commissioners and institutional ownership do not have significant effects on earning quality.
Originality: Our study contributes the scholarly discussion about earning quality. For instance, the lack of earnings management is not sufficient to guarantee high-quality earnings (or high-quality accounting numbers more generally), because other factors contribute to the quality of earnings.
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