PENGARUH KONVERGENSI IFRS TERHADAP MANAJEMEN LABA DENGAN PERLINDUNGAN INVESTOR SEBAGAI VARIABEL PEMODERASI

Abstract

This study examines the effect of IFRS convergence on earnings management with investor protection as moderating variable. We use board independence as a proxy of investor protection as moderating variable. The study was using 12 non manufacture company listed in Indonesia StockExchange (ect Bank and financial institutions), with a period between 2006-2013. Discretionary accrual with modified Jones is used to determine the earnings management practice. The hypothesis were tested using multiple regression analysis .

The result of this study showed that IFRS convergence has no effect on earnings management. After using board independence as moderating variable, convergence IFRS has no effect on earnings management.The result of this study support Houqe et al (2010) highlight the importance of investor protection for financial reporting quality and the need for regulators to design mechanisms that limit managers’ earnings management practices.

Keyword: IFRS, Earnings Management, Investor Protection, Board Independent.