Corporate diversification, institutional ownership, and chief executive officer replacement to earning management

  • Ni Putu Pradnyamitha Devy Handayani Udayana University, Bali, Indonesia
  • I Gst. Bgs. Wiksuana Udayana University, Bali, Indonesia
Keywords: CEO replacement, corporate diversification, earnings management, industry, institutional ownership

Abstract

This study aims to determine the effect of corporate diversification, institutional ownership, and the change of chief executive officer (CEO) to earnings management. The population in this study is the consumer goods industry sector companies listed on the Indonesia Stock Exchange. Sampling used in this study is the census of the entire population being the study sample, and the number of samples of this study was 35 companies. The research data is secondary data obtained from the Indonesia Stock Exchange website from 2013 to 2018. The research hypothesis testing uses multiple linear regression analysis techniques, with SPSS application tools. The results showed that: (1) Corporate diversification has a positive effect on earnings management. (2) Institutional ownership has a positive and significant effect on earnings management. (3) CEO replacement has a negative and significant effect on earnings management. (4) corporate diversification, CEO replacement, and institutional leadership simultaneously have a significant effect on earnings management.

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Published
2020-08-03
How to Cite
Handayani, N. P. P. D., & Wiksuana, I. G. B. (2020). Corporate diversification, institutional ownership, and chief executive officer replacement to earning management. International Research Journal of Management, IT and Social Sciences, 7(5), 24-31. https://doi.org/10.21744/irjmis.v7n5.963
Section
Research Articles