This research aims to determine the effect of corporate governance on the real
earnings management, occured in companies listed in Indonesia Stock Exchange
during 2006-2010 period. Corporate governance measurement used structural
approach consist of the percentage of institutional ownership, manajerial
ownership, the proportion of the board independent commissioner, the size of
board commissioners and the existence of an audit committee. While, earnings
management measurement used real approach. This study used purposive
sampling method. These samples are 160 companies. Analysis used multiple
regression analysis. Research results indicate that corporate governance
including institutional ownership, manajerial ownership, the proportion of the
board independent commissioner, and the existence of an audit committee have
effect on real earnings management. While, the size of board commissioners do
not effect on the real earnings management
