Do Political Connections, Ownership Structure, and Audit Quality Affect Earnings Management?

Yeterina Widi Nugrahanti, Agung Tri Nugroho


This study aims to determine the effect of political connections, ownership structure (managerial ownership and institutional ownership), and audit quality toward earnings management. Earnings management in this study is measured by discretionary accruals using the modified Jones model. By purposive sampling, this study gets 262 non-financial companies listed in Indonesia Stock Exchange during 2017-2019 as samples (786 observations). This study uses generalized least square panel data regression for testing the hypotheses. The results indicate that political connections have a positive effect on earnings management, while managerial ownership, institutional ownership and audit quality have a negative effect on earnings management.

Penelitian ini bertujuan untuk mengetahui pengaruh koneksi politik dan mekanisme corporate governance terhadap manajemen laba. Variabel independen yang digunakan dalam penelitian ini adalah koneksi politik, kepemilkan manajerial, kepemilikan institusional dan kualitas auditor. Variabel dependen yang digunakan dalam penelitian ini adalah manajemen laba. Dalam penelitian ini koneksi politik diukur dengan jumlah dewan direksi dan dewan komisaris yang memiliki koneksi politik dan manajemen laba diukur dengan nilai discretionary accruals menggunakan model Jones dimodifikasi. Penelitian ini menggunakan data sekunder berupa data yang diambil dari laporan tahunan perusahaan dengan rentang waktu tahun 2017 sampai 2019 (3 tahun). Populasi penelitian ini merupakan semua sektor perusahaan yang terdaftar dalam Bursa Efek Indonesia (BEI) dan berdasarkan hasil purposive sampling terdapat 262 perusahaan (786 observasi) yang digunakan sebagai sampel penelitian. Pengujian hipotesis dalam penelitian ini menggunakan uji regresi data panel. Hasil penelitian ini menunjukkan bahwa koneksi politik berpengaruh positif terhadap manajemen laba, sedangkan kepemilikan manajerial dan kepemilikan instusional berpengaruh negatif terhadap manajemen laba. Penelitian ini juga menemukan bahwa kualitas auditor tidak berpengaruh terhadap manajemen laba.


Political connection;Managerial ownership;Institutional owneship;Audit quality;Earnings management

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