INFLUENCE THE PROPOTION OF INDEPENDENT DIRECTORS AND CONTROLING SHAREHOLDERS ON THE EARNINGS MANAGEMENT

Abstract

Manager's  motivation  to  do  earnings  management  to  good  financial  statements  by presenting misleading information to stakeholders, so that the Board of Commissioners is important to supervise effectively the company's operations control with controlling shareholders.This study aimed to determine if the proportion of the independent director and the ownership of the controlling share may reduce earnings management. This research uses  manufacturing  companies  Indonesia  in  2012-2016.  The  technique  of  purposive sampling method. The results showed that the proportion of proportion of the independent directors and controlling shareholders reduce the occurrence of profit management