This research aimed to find out the effect of CAMEL ratio toward the
earning management practics in Public Islamic Bank. Camel ratio was proxied by
5 financial ratio namely CAR, RORA, ROA, NPM, and LDR while the earning
management was proxied by discretionary accruals. The sample use in this
research was Public Islamic Bank enlisted in Bank Indonesian in 2009-2013
consisting 10 banks. The sampling method was purposive sampling. The date
used were the annual report published in 2009-2013.
The test of ratio of CAR, RORA, ROA, NPM, and LDR toward the
earning management practice was by multiple linear regression. Of the rest results
found empirical evidence that RORA significant negative effect toward the
earning management practice in Public Islamic Bank.