ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS LABA DAN NILAI PERUSAHAAN
DRS. Hanung TRIATMOKO Si, AK
Universitas Sebelas Maret (UNS)
The objective of this study is to examine the influence of Investment Opportunity Set (IOS) and corporate governance mechanism (the audit committee, board of commissioner, managerial ownership, institutional ownership) toward earnings quality and firm value Among manufacturing companies listed at the Jakarta Stock Exchange.
The result of this study showed significant influences That IOS have to earnings quality and firm value, managerial ownership and institutional ownership have significant influences to firm value but Did not have significant influence to earnings quality, audit committee and board of commissioner Did not have significant influence to earnings quality and firm value.
Keywords: Investment Opportunity Set, corporate governance mechanism, earnings quality, firm value.
According to agency theory, the separation between ownership and management company can cause conflict. Conflict called the agency conflict due to related parties who are principals (who gave the contract or shareholders) and agents (who receive funds under management contracts and principals) have conflicting interests. When agents and principals seek to maximize their own utility, and have different desires and motivations, there is reason to believe that the agent (management) do not always act according to desire principals (Jensen and Meckling, 1976). The idea that the management can take action only provides benefits for themselves based on an assumption that states every person has the self-seeking behavior or self-Interested behavior. Desire, motivation and utilities that are not the same between management and shareholders raises the possibility of adverse action management shareholders, among other things tend to behave unethically and accounting fraud.
Agency conflict can lead to the nature of an opportunistic earnings management reports to maximize his personal interests. If this happens will result in lower earnings quality. Subramanyam (1996) in Siregar and Main (2005) argued that one measure of corporate performance that is often used as a basis for decision-making is the company’s profit generated. Earnings are measured on an accrual basis is considered a better measure of company performance than operating cash flows because accruals reduces the time and mismatching problems inherent in the use of short-term cash flow (Dechow, 1994).