Pengaruh Corporate Governance Terhadap Integritas Laporan Keuangan pada Perusahaan Milik Negara di indonesia.

Abstract

Integrity of financial statement is a condition ofcompany’s financial statement for presented in an honest and true with not hidden. Financial statement information plays an important role in decision making. Therefore, the financial statement should be high integrity. This study aims to analyze an empirical evidence about the effect of corporate governance (managerial ownership, institutional ownership, independence of Board Commissioners, Size of Board Commissioner, and Audit Quality) on integrity of financial statement among BUMN companieslisted in Indonesia Stock Exchange in period 2011-2014. This research use traditional agency theory. The theory of the agency relationship is used in order to understand corporate governance more deeply. Data was collected by purposive sampling method. Data is Analysed by using multiple linear regression analysis. The result of this study showed that corporate governance are partially had significant positive effect on integrity of financial statement. Only one of Corporate Governance variables did not have a significant effect. Meanwhile, Company’s Size and Leverage had positive effect on integrity of financial statement. Company’s Age, however, had negative effect on integrity of financial statement. This study contribute to the agency theory in the sense that ownership and board’s function in the unique environment could improve the financial statement’s quality. Practicallly, this study can be used to design the owenrship and board’s structure in order inline with the quality of financial statement.

Keyword:        Managerial Ownership, Institutional Ownership, Independence of    Board Commissioners, Size of Board Commissioner, Audit Quality   and Integrity of Financial Statement