The objective of this research is to examine the influence of the earnings
management concerning to the firm value and to examine whether the corporate
governance mechanism is the moderating variable between influence of earnings
management toward the firm value. The variable examined in this research is
earnings management measured with discretionary accrual by modified Jones
model, firm value, institutional ownership, managerial ownership, independent
commissioner and auditor quality.
The sample which is used in this research listed non financial company in
Indonesian stock exchange on period of 2005-2009. This research is using
purposive sampling method to determine the sample and it produce 58 companies
as research sample. Regression analysis method used descriptive statistic and
multiple regression.
The result of this research shows the earnings management negative
influence to firm value. Corporate governance mechanism as moderating variable
from influence earnings management to firm value unprovable