This research was aimed at knowing the effect of Good Corporate Governance mechanism (the instituonal ownership, the independent commissioner, the board of commissioner, the board of commissioner, the board of directors, company scale) as well as the financial leverage on profit management proxied by discretionary accruals. The population of this research was the non-financial companies (manufacturing company) listed in Indonesia Stock Exchange in 2011-2013. The 36 manufacturing companies were chosen to be the samples using purposive sampling technique. The data were analyzed using double linear regression analysis.
The result of this research showed that the institutional ownership had a positive but insignificant effect on the profit management with the significant level of 0.971, the independent commissioner had a positive and significant effect on the profit management with the significant level of 0,071, the board of commissioners had a negative and insignificant effect on the profit management with the significant level of 0.224, the board of directors had a positive and significant effect on the profit management with the significant level of 0.011, the company scale had a negative and significant effect on the profit management with the significant level of 0.000, and leverage had a negative and insignificant effect on the profit management with the significant level of 0.579.