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Abstract

This research aims to get an overview of the influence of Good Corporate Governance (GCG) on Earnings Management practices in the research period from 2014 to 2021 with selected journals sample. What are the topics that GCG used and how it affects on earnings management, as well as what motives, theories, and models are used in measuring Earnings Management practices are the areas of this research. The researcher uses a Systematic Literature Review (SLR) methodological approach and the results show that the influence of the GCG mechanism on earnings management is quite diverse. This study wants to provide new insights regarding earnings management research in the perspective of good corporate governance in the future. Several topics proposed for the next research are intellectual capital, ownership by age factor, foreign ownership and earnings management measurement model with a new approach developed by Dechow et al., 2011.

Opportunistic motivation on fair value accounting of investment properties: Does corporate governance matter in Indonesia?

“…The proxies for corporate governance variables are institutional ownership and audit committees because these two measurements are the most widely used and affect reducing earnings management practices (Puspitasari et al, 2022).…”

“…Improving corporate governance can benefit corporates in several ways. These include increasing internal organizational factors, enhancing investor and public trust, raising management and stakeholders' awareness of the importance of governance, mapping strategic issues, and input in policy-making (Puspitasari, Razak, Aprianto, Rinaldi, & Meiden, 2022;Wijaya & Firmansyah, 2021). Moreover, it also includes quality standards in the form of public recognition of corporates' commitment, responsibility, and efforts in implementing effective governance practices (Pascayanti et al, 2017).…”

“…Its implementation can suppress opportunistic behavior by increasing the supervision of management (Wijaya & Firmansyah, 2021). Additionally, Puspitasari et al (2022) stated that good governance practices can help mitigate opportunistic management behavior in corporate management. The second hypothesis in this study is as follows:…”

“…Good corporate governance contributes to economic stability and growth (Thesing & Velte, 2021) through investment resilience for existing and new investors (Kusuma & Rohman, 2014). Improved governance benefits corporates in terms of improved internal organizational factors, increased investor and public trust, enhanced management and stakeholder awareness of the importance of governance, and mapping of strategic issues and inputs in policy-making (Puspitasari et al, 2022). Others include quality indicators or standards in public recognition and the realization of commitment, responsibility, and efforts to promote management to implement governance (Roy & Alfan, 2022).…”