This research aimed to test the effect of good corporate governance
proxied through: institusional ownership, management ownership, audit
committee, independent commissioner, audit quality, leverage and profitability
toward the earning management from 2012-2014. This research used 57 samples
obtained from the purposive sampling method which consisted of companies
included in the rating of Corporate Governance Preception Index (CGPI) by the
Indonesian Institute for Corporate Governance (IICG).
The analysis method used in this research was multiple regression. The
findings of this research showed that institutional ownership, managerial
ownership and profitability positively affected the earning management. Audit
committee, independent commissioner, audit quality and leverage did not have
positively effect on the earning management.