Analysis of The Effect of IFRS Convergence on Earnings Management with Corporate Governance as a Moderating Variable (Empirical Study on Non-Financial Companies Listed on the Indonesian Stock Exchange Before and After IFRS)

摘要

This study aimed to analyze the effect of IFRS convergence on earnings management with corporate governance mechanism as a moderating variable. Earnings management was measured using discretionary accruals. The corporate governance mechanism as a moderating variable includes the proportion of independent commissioners, size of commissioner boards, auditor quality, institutional ownership, audit committee, and managerial ownership. The samples used in the study were non-financial companies listed on the Indonesia Stock Exchange (IDX) before and after IFRS. The results of this study showed that the convergence of IFRS had a significant effect. Furthermore, the results of this study revealed that the adoption of IFRS can prevent earnings management actions taken by managers. Corporate governance mechanism can strengthen and minimize the effect of earnings management during the convergence of IFRS.