The Effect of Good Corporate Governance, Debt Contracts, and Intellectual Capital on Earnings Management

ABSTRACT : The behavior of investors who tend to pay attention only to information about company profitswithout paying attention to the background of the earnings has created opportunities for company managementto practice earnings management. This earnings management practice can be strengthened or minimized byvarious factors so that the purpose of this study is to obtain empirical evidence of the influence of goodcorporate governance, debt contracts, and intellectual capital. This research was conducted in non-financialstate-owned companies listed on the IDX with a sample of 15 companies using purposive sampling method.Data collection was carried out by non-participant observation methods and using multiple linear analysistechniques. Based on the analysis, it is found that good corporate governance has a negative effect on earningsmanagement, debt contracts have a positive effect on earnings management, and intellectual capital has apositive effect on earnings management.

Keywords: good corporate governance, debt contracts, intellectual capital, earnings management