International Conference on Global Education IX

“Technological and Educational Empowerment Post COVID-19”

THE EFFECT OF OWNERSHIP STRUCTURE, FIRM SIZE, INDEPENDENT

COMMISSIONER, AND BONUS COMPENSATION TOWARDS EARNINGS
MANAGEMENT
(Empirical Study Manufacturing Companies Of The Basic Industry andChemicals Sector
Listed In The Indonesian Stock Exchange 2017-2020)

Agustrianita Nor
E-mail : agustrianitanor@gmail.com

ABSTRACT

This study aims to determine the effect of ownership structure, firm size, independent
commissioners and bonus compensation on earnings management in basic and chemical
industry companies in 2017-2020 either partially or simultaneously. The sample in this study
were 18 companies in the Basic and Chemical Industry Sector listed on the Indonesia Stock
Exchange in 2017-2020 with purposive sampling technique. The type of data in this study is
quantitative data, namely data obtained in the form of numbers. The analytical method used is
multiple linear regression analysis. The results of this study found that Ownership Structure
and Firm Size had a negative effect on earnings management, Independent Commissioners had
a positive effect on earnings management and bonus compensation had no positive effect on
earnings management. Simultaneously Ownership Structure, Firm Size, Independent
Commissioner and Bonus Compensation have a positiveeffect on earnings management.

Keywords: Ownership Structure, Firm Size, Independent Commissioner, Bonus

Compensation, Earnings Management

INTRODUCTION

One source of information from external parties in assessing financial performance is

financial statements. Financial reports are the main tool for managers to show the effectiveness
of achieving goals and to carry out the responsibility function within the organization.
According to Financial Accounting Standards, the purpose of financial statements is to provide
information regarding the financial position, performance and changes in the financial position
of an enterprise that is useful to a large number of users in making economic decisions.
The company's management performance is reflected in the profit contained in the
income statement. According to Statement of Financial Accounting Concept (SFAC) No. 1,
earnings information is a major concern for assessing management performance or
accountability. In addition, earnings information also helps owners or other parties in estimating
the company's earnings power in the future. This earnings information is often the target of
engineering opportunistic actions by management to maximize its satisfaction. This
opportunistic action is carried out by choosing certain accounting policies, so that company
profits can be regulated, increased or decreased according to their wishes. Management
behavior to manage earnings in accordance with their wishes is known as earnings
management.
Earnings management is something that accountants need to understand because it will
increase their understanding of the usefulness of net income information, whether reported to
investors, creditors or tax authorities. However, in reality many managers practice earnings
management for the benefit of the company and personal interests. In this case the manager is
obliged to maximize the welfare of the shareholders, but on the other hand the manager also
wants their welfare. The unification of these parties often creates a problem known as the
agency problem. According to agency theory, to overcome the problem of misalignment of
interests between principal and agent can be done through good company management
(Midiastuty & Machfoedz, 2003). As revealed by Veronica and Bachtiar (2004) corporate
governance is one way to control opportunistic actions by management. There are four

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corporate governance mechanisms that can be used to resolve agency conflicts, namely
increasing managerial ownership, increasing institutional ownership, independent
commissioners and audit committees (Andri and Hanung, 2007).
One of the earnings management phenomena that has occurred in manufacturing
companies in Indonesia is the case of PT. Indofarma Tbk (INAF), and PT. Toshiba, Tbk. The
first case is the case of PT. Indofarma, Tbk (INAF) where this case is a case of error in the
presentation of financial statements where the value of Goods in Process presented in the
financial statements of PT. Indofarma, Tbk in 2010 was higher than the reported value of 28.87
billion. As a result, the cost of goods sold is lower (understated) and profit is higher (overstated)
than it should be (Source: detikfinance.co, 2015).
Based on the phenomena related above in the basic and chemical industrial sector
companies to overcome the practice of earnings management can be influenced by certain
factors. In this study, the factors that are thought to influence earnings management are
ownership structure, firm size, independent commissioners and bonus compensation. This study
intends to determine what factors can affect earnings management in the company. The
difference between this research and previous research lies in the period of year, the object of
research, and the selected independent variables. This study uses a research period of four years
(2017- 2020), with the assumption that in that time range there are many changes that occur in
the business world and the state of the Indonesian economy, as well as to obtain the latest
results regarding earnings management by companies, especially in sector companies basic and
chemical industry.

Formulation of the problem

 Does the Ownership Structure partially affect earnings management in Basic and Chemical
Industry Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2020
period?
 Does Company Size have a partial effect on Earnings Management in Basic and Chemical
Industry Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2020
Period?
 Does the Independent Commissioner have a partial effect on Earnings Management in
Basic and Chemical Industry Sector Companies Listed on the Indonesia Stock Exchange for
the 2017-2020 Period?
 Does Bonus Compensation partially affect earnings management in Basic and Chemical
Industry Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2020
Period?
 Do Ownership Structure, Company Size, Independent Commissioner and Bonus
Compensation have a simultaneous effect on Earnings Management in Basic and Chemical
Industry Sector Companies Listed on the Indonesia Stock Exchange for the 2017-2020
Period?

LITERATURE REVIEW

Profit management
According to Moeljadi (2006:26) Earnings management can be done by maximizing
profit. Profit maximization is the profit maximization of the company after tax. Profit
maximization is often considered as a company goal. Based on several understandings from
previous experts, it can be concluded that earnings management is carried out intentionally
within limits to lead to a desired level of profit.
According to Subramanyam and Wild (2010:4), earnings management has three types of
strategies that managers usually use to achieve long- term earnings management goals, namely:
a. Income Increasing, managers increase profits in the current period.
b. Taking a Bath, managers perform earnings management by removing assets that will incur
future costs.

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c. Income Smoothing, managers reduce fluctuations in earnings by way of profit distribution in

several periods.

Ownership Structure
According to I Made Sudana (2011:11) stated that the ownership structure is the
separation between company owners and company managers. The owner or shareholder is the
party who includes capital into the company, while the manager is the party appointed by the
owner and given the authority to make decisions in managing the company, with the hope that
the manager acts in the interests of the owner.
Managerial ownership is share ownership by the company's management. Managerial
share ownership can align the interests of shareholders with managers, because managers directly
feel the benefits of the decisions taken and managers who bear the risk if any. Losses that arise
as a consequence of making wrong decisions. Sonya Majid (2016:4) states that managerial
ownership is the shareholder of the management who actively participates in decision- making
within the company, for example directors and commissioners.
Institutional ownership is share ownership by other institutions, namely ownership by
other companies or institutions. Share ownership by parties formed by institutions such as
insurance companies, banks, investment companies and other institutional ownership.
Institutional ownership is one of the tools that can be used to reduce agency conflict. According
to Pasaribu, Topowijaya and Sri (2016:156) institutional ownership is the percentage of shares
owned by institutions. Institutional ownership is a tool that can be used to reduce conflicts of
interest.

Firm Size
According to Brigham & Houston (2010:4) the size of the company is as follows:
"Company size is a measure of the size of a company which is indicated or assessed by total
assets, total sales, total profit, tax expense and others".
According to Hartono (2008:14) the size of the company (firm size) is as follows: "the
size of the company can be measured by the total assets / large assets of the company by using
the calculation of the logarithmic value of total assets".

Independent Commissioner
In the general guidelines for Good Corporate Governance (2006:13) the definition of an
independent commissioner is as follows: "members of the board of commissioners who are not
affiliated with the board of directors, other members of the board of commissioners and
controlling shareholders, and are free from business relationships or other relationships that may
affect their ability to act independently. or act solely for the benefit of thecompany”.
According to Bank Indonesia regulation No.8/4/PBI/2006 concerning the implementation
of good corporate governance for Commercial Banks article 1 paragraph 4, independent
commissioners are: “board of commissioners who have no financial, management, share
ownership and/or family relationship with the board other commissioners, directors and/or
controlling shareholders or other relationships that may affect their ability to act
independently”.

Bonus Compensation
According to Hasibuan (2017:119) Compensation is all income in the form of money,
goods directly or indirectly received by employees in return for services provided to the
company. The establishment of an effective compensation system is an important part of
human resource management as it helps attract and retain talented jobs. In addition, the
company's compensation system has an impact on strategic performance.
According to Marwansyah (2016: 269) Compensation is a fair and appropriate award or
reward, direct or indirect, financial or non-financial to employees, as a reward or contribution of
their services to the achievement of company goals.

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Conceptual Framework
Image 1. Conceptual Framework

Hypothesis
Effect of Ownership Structure on Earnings Management
According to Mahadewi and Krisnadewi (2017) where the relationship states that
managerial ownership has a negative effect on earnings management. The research of Irena
Palma and Neni Marlina (2020) states that managerial ownership and institutional ownership
have no significant effect on earnings management. The results of research by Rexy Joseph and
Basuki Hadiprajitno (2017) state that managerial ownership structure has no effect on
earnings management.
H1: It is suspected that the ownership structure affects earnings management in basic and
chemical industrial sector companies listed on the Indonesia Stock Exchange in 2017-2020.

Effect of Firm Size on Earnings Management

According to research conducted by Winda and Erna (2016) which states that company
size has an effect on earnings management which in their research states that small and large
company sizes have the potential to carry out earnings management. However, research
conducted by Rexy Joseph and Basuki Hadiprajitno (2017) which states that company size
affects earnings management. Because the bigger the company, the more accurate and credible
financial reports will be issued, so that it can be trusted by external parties, namely investors,
the government and the wider community.
H2: It is suspected that company size affects earnings management in basic and chemical
industrial sector companies listed on the Indonesia Stock Exchange in 2017-2020

Influence of Independent Commissioners with Earnings Management

According to Meilani and Zaenal (2020) said that the independent board of
commissioners as measured by the composition of the independent board of commissioners on
the composition of the board of commissioners has a significant negative effect on earnings
management. Mahadewi and Krisnadewi (2017) who say that independent commissioners have a
negative effect on earnings management because the independent board of commissioners in the
company has the duties and responsibilities of supervising the information contained in the
financial statements.
H3: It is suspected that the Independent Commissioner has an effect on earnings management in
basic and chemical industrial sector companies listed on the Indonesia Stock Exchange in 2017-
2020

Effect of Bonus Compensation on Earnings Management

According to Yustiningarti and Asyik (2017) found that only information asymmetry and
bonus compensation have a positive and significant effect on earnings management. Vicky
Ferdiansyah (2014) examines the effect of audit quality, bonus compensation, ownership
structure and firm size on earnings management. The results of the study stated that bonus
compensation had a negative and insignificant effect on earnings management.
H4: It is suspected that bonus compensation has an effect on earnings management in basic and
chemical industrial sector companies listed on the Indonesia Stock Exchange in 2017-2020

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Effect of Ownership Structure, Firm Size, Independent Commissioner and Bonus

Compensation with Earnings Management
Jensen & Meckling (1976) stated that managerial ownership has succeeded in being a
mechanism to reduce the agency problem of managers by aligning the interests of managers
with shareholders. Research conducted by Abdillah and Purwanto (2016) shows that
managerial ownership has a positive and significant effect on discretionary accruals, which
means it has a negative effect on earnings management. Research conducted by Abdillah and
Purwanto (2016) shows that institutional ownership has a negative and significant effect on
discretionary accruals, which means it has a positive effect on earnings management. Abdillah
and Purwanto (2016) stated that independent commissioners have a negative and significant
effect on discretionary accruals, which means they have a positive effect on earnings
management. Research conducted by Maduretno (2013) shows that bonus compensation has a
significant effect on earnings management.
H5: It is suspected that Ownership Structure, Company Size, Independent Commissioner and
Bonus Compensation affect earnings management in basic and chemical industrial sector
companies listed on the Indonesia Stock Exchange in 2017-2020

RESEARCH METHODS

Method of collecting data

The data collection method used in this research is library research and website.
 Library Research
Read and study books and other reading sources that contain related theories as a source of
information for the problems being discussed.
 Website
At this stage the authors collect data from related sites such as www.idx.co.id to obtain
additional literature, journals and other data needed in the study.

Data collection technique

Data collection techniques that the authors use in this study are documentation and
internet sites. Documentation according to Sugiyono (2015: 329) is a method used to obtain data
and information in the form of books, archives, documents, written numbers and pictures in the
form of reports and information that can support research. The technique of collecting data from
this research using documentation techniques is a method of collecting data by viewing, using
and studying secondary data obtained by the BEI website.

Data Type
The data used is quantitative data. Quantitative data, namely data obtained in the form of
numbers. Quantitative data in this study is sourced from the annual reports of manufacturing
companies in the basic and chemical industry sub-sectors listed on the Indonesia Stock
Exchange in 2017- 2020 which are contained on the official IDX website, namely www.idx.co
.id and www.idnfinancials.com.

Data source
The data source used is secondary data. According to Sugiyono (2015:137) secondary
data is a data source that does not directly provide data to data collectors. As an empirical study,
secondary data in this study were obtained from journals, articles and previous studies. It is
collected by downloading it from the Indonesia Stock Exchange website.

Population
The population is a generalization area consisting of: objects or subjects that have certain
qualities and characteristics determined by the researcher to be studied and then draw
conclusions (Sugiyono, 2016:117). The population in this study were Basic and Chemical
Industrial Companies totaling 67 companies.

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Sample
According to Sugiyono (2016: 118) The sample is part of the number and characteristics
possessed by the population. The sample selection in this study used a purposive sampling
method. Purposive sampling method is one of the sampling techniques with special
consideration so that the data from the results of the research conducted becomes more
representative.
• Basic and Chemical Industry Companies listed on the Indonesia Stock Exchange in 2017-
2020.
• Basic and Chemical Industry Companies that use rupiah currency.
• Profitable Basic and Chemical Industry Companies
Companies that meet the criteria for research samples are 18 companies, so a sample of 18
companies x 4 years of research = 72 data.

Data analysis method

Multiple Linear Regression Analysis
According to Agussalim Manguluang (2016:81) Multiple linear regression is a regression
in which the dependent variable Y is linked/explained by more than one variable X. This model
was chosen because this study was designed to examine the factors that influence the
dependent variable, where the independent variable is used in This research is more than one.

Coefficient of Determination (𝑹𝟐)

The coefficient of determination (R2) measures how far the model's ability to explain
variations in the dependent variable is. The value of the coefficient of determination is zero and
one. A value close to one means that the independent variables provide almost the same
information needed to predict the variation of the dependent variable (Ghozali, 2016: 95).

Classic assumption test Normality test

The normality test aims to test whether in the regression model, the confounding or
residual variables have a normal distribution or not. The normality test is useful for proving that
the data from the sample that is owned comes from a normally distributed population. The T test
and F test assume that the residual value follows a normal distribution. If this assumption is
violated, the statistical test becomes invalid for a small sample size (Ghozali, Imam, 2016:154).

Multicollinearity Test
The multicollinearity test aims to test whether in the regression model there is a
correlation between the independent variables. In a good regression model, there should be no
correlation between independent variables. To detect the existence of multicollinearity in the
regression model in this study, it was done by looking at the tolerance value and variance
inflation factor (VIF). The cutoff value used is the tolerance value or equal to the VIF value if
the analysis results show the tolerance value is above 0.10 and the VIF value is below 10, then
there is no multicollinearity between variables in the regression model (Ghozali, 2016:103).

Autocorrelation Test
The autocorrelation test aims to test whether a linear regression model has a correlation
between the confounding error in the period and the error in the t-1 period (previous). If there is
a correlation, it is called an autocorrelation problem (Ghozali (2016: 107) The hypotheses to be
tested are:
• If the test value and probability < 0.05, it can be concluded that the residuals are not random
or thereis an autocorrelation between the residual values.
• If the test and probability values are > 0.05, it can be concluded that the residuals are
random or there is no autocorrelation between the residual values.

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Heteroscedasticity Test
According to Ghozali (2016:134) the heteroscedasticity test has the aim of testing whether
the regression model has an inequality of variance from the residuals of one observation to
another. In this study using the Glejser test by regressing the dependent variable to the absolute
value of the residual. Residual is the difference between the observed value and the predicted
value, and absolute is the absolute value (Ghozali, 2016:134). Thecriteria are as follows:
• If the significance of the independent variable with the absolute residual > 0.05,
heteroscedasticity occurs.
• If the significance of the independent variable with the absolute residual < 0.005, there is no
heteroscedasticity problem.

Individual Parameter Significance Test (Test Statistical t)

The partial hypothesis testing uses the t statistical test. The t-test (partial) is used to test
whether there is a partial or individual significant effect of the independent variable
(independent) on the dependent variable (Agussalim Manguluang, 2016:98).
The criteria for accepting or rejecting the hypothesis used are If H0 is rejected and Ha is
accepted, if t-count t-table or significant value (prob) 0.05 (α), this means that partially the
independent variable (independent) has a significant effect on dependent variable (dependent).
H0 is accepted and Ha is rejected, if t-count t-table or significant value (prob) 0.05 (α), this
means that partially the independent variable (independent) has no significant effect on the
dependent variable (dependent).

Simultaneous Significance Test (F Statistics Test)

Simultaneous hypothesis testing uses the F statistical test. The F test is used to test
whether there is a simultaneous significant effect of the independent variables (independent) on
the dependent variable (Agussalim Manguluang, 2016:98).
After obtaining the F-count value, it is then compared with the F-table value, with the
following test criteria:
If H0 is rejected, Ha is accepted, if F-count F-table or significant value (prob) 0.05 (α),
this means that simultaneously the independent variables (independent) have a significant effect
on the dependent variable (dependent). And if H0 is accepted, Ha is rejected, if F-count F-table
or sig value. (prob) 0.05 (α), this means that simultaneously the independent variables
(independent) have no significant effect on the dependent variable (dependent).

RESULTS AND DISCUSSION

Research result
Classic assumption test
Normality test
The following are the results of theNormality Test in this study:
Table 1 Normality Test Results

Source: Processed data (2021)

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Based on the table above, the results of the normality test with Kolmogorov-Smirnov
show that the value of Asymp.Sig. (2-tailed) of 0.200 which means greater than 0.05. These
results can be concluded that the data in this study are normally distributed.

Multicollinearity Test
The following are the results of the Multicollinearity Test in this study:

Table 2 Multicollinearity Test Results

Source: Processed data (2021)

In the table above, it can be seen that each independent variable used has a small correlation
coefficient of 10, so it can be concluded that each independent variable used is free from
multicollinearity symptoms.

Autocorrelation Test
Table 3 Autocorrelation Test Results

Source: Processed data (2021)

The following are the results of the Autocorrelation Test in this study: The results of the
autocorrelation test where the Asymp.Sig (2-tailed) value is 0.235 > 0.05, it can be concluded
that there is no autocorrelation symptom so it is feasible to use.

Heteroscedasticity Test
Table 4 Heteroscedasticity Test Results

Source: Processed data (2021)

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In the managerial ownership variable the residual absolute value obtained is 0.729, the
institutional ownership variable residual absolute value is 0.542, the firm size variable residual
absolute value obtained is 0.699, the independent commissioner variable residual absolute value
obtained is 0.516 and for bonus compensation the absolute residual value obtained is 0.158 .
This shows that there is no heteroscedasticity because the value of > 0.05.

Data analysis method

Multiple Linear Regression Analysis

Table 5. Multiple Linear Regression Analysis Results

Coefficientsa

d. Dependent Variable: Y_MANAJEMEN LABA

Source: Processed data (2021)
From table 4.12, the results of multiple regression are obtained, namely:
ML = 0.589K - 0.246KM - 0.106KI – 0.020UP+ 0.283KIN - 0.016KP
From the above regression equation can be described as follows:
1. Constants (Absolute Earnings Management Value) if the ownership structure, company size,
independent commissioner, and bonus compensation = 0 then earnings management is 0.589.
Managerial ownership regression coefficient is -0.246, which means that there is a negative
relationship between ownership structure and earnings management, if the ownership
structure increases by one unit, it will cause a reduction in earnings management by -0.246
units, if the other independent variables are constant
2. Institutional ownership regression coefficient is -0.106 which means that there is a negative
relationship between ownership structure and earnings management, if the ownership
structure increases by one unit, it will cause a reduction in earnings management by -0.106
units, if the other independent variables are constant.
3. The regression coefficient of firm size is - 0.020, which means that there is a negative
relationship between firm size and earnings management. If firm size increases by one unit,
earnings management will cause a reduction of -0.020 units, if other independent variables
are constant.
4. The independent commissioner's regression coefficient is 0.283, which means that there is a
positive relationship between the independent commissioner and earnings management, if
the independent commissioner increases by one unit, earnings management will cause an
increasein earnings management of 0.283 units, if other independent variables are constant.

Coefficient of determination (R2)

Table 6. The result of the coefficient of determination (R2)

Source: Processed data (2021)

From the table above, the coefficient of determination (Adjusted R Square) is 0.183. This
means that ownership structure, company size, independent commissioners and bonus

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compensation can explain earnings management by 18.3%. While the remaining 100% - 18.3%
= 81.7% is explained by factors other than the variables studied above.

Hypothesis test
T Uji test
Table 7. t test results

Source: Processed data (2021)

The results of the T test can be described as follows:
1. The results of testing managerial ownership on earnings management obtained a t-count
value of 2.490, which is larger than a t-table of 1.66792. The significance level shows 0.015
which is greater than the 0.05 significance level. The results of the institutional ownership
test on earnings management obtained a t-count value of 2.307, which is larger than the t-
table of 1.66792. The significance level shows 0.024 which is greater than the 0.05
significance level. This means that H1 is accepted and it can be concluded that the
ownership structure has an effect on earnings management.
2. The results of the test of firm size on earnings management obtained a t-count value of
3.029, which is larger than the t-table of 1.66792. The significance level shows 0.003 which
is smaller than the 0.05 significance level. This means that H2 is accepted and it can be
concluded that firm size independently affects earnings management.
3. The results of the independent commissioner's test on earnings management obtained the t-
count value of 2.677, which is larger than the t-table of 1.66792. The significance level is
0.009 which is smaller than the 0.05 significance level. This means that H3 is accepted and it
can be concluded that the independent commissioner has an effect on earnings management.
4. The results of the bonus compensation test on earnings management obtained a t-count of -
0.276 which is small from a t-table of 1.66792. The significance level shows 0.784 which is
greater than the 0.05 significance level. This means that H4 is rejected and it can be
concluded that bonus compensation has no effect on earnings management.

F Uji test
Table 8. F test results
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression ,236 5 ,047 4,179 ,002b
Residual ,747 66 ,011
Total ,983 71
Source: Processed data (2021)
From table above, the calculated F value is 4.179 which is small from the F table of 2.51
with a significance level of 0.002 where the significant value is small from a significant level
of 0.05. This shows that H5 is accepted, meaning that the ownership structure, firm size,
independent commissioners and bonus compensation simultaneously affect earnings

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Discussion
Effect of Ownership Structure on Earnings Management
The t-count value of 2.490 is greater than the t-table of 1.66792. The significance level
shows 0.015 which is greater than the 0.05 significance level. The results of the institutional
ownership test on earnings management obtained a t-count value of 2.307, which is larger than
the t-table of 1.66792. The significance level shows 0.024 which is greater than the 0.05
significance level, it can be interpreted that the ownership structure has an effect on earnings
management in basic and chemical industrial sector companies listed on the Indonesia Stock
Exchange for the 2017-2020 period.

Effect of Firm Size on Earnings Management

The t-count value of 3.029 is bigger than the t-table of 1.66792. The significance level
shows 0.003 which is smaller than the 0.05 significance level, it can be interpreted that
company size independently affects earnings management in basic and chemical industrial
sector companies listed on the Indonesia Stock Exchange for the 2017-2020 period.

Influence of Independent Commissioners on Earnings Management

The t-count value of 2.677 is bigger than the t-table of 1.66792. A significant level of
0.009 which is smaller than a significant level of 0.05 means that independent commissioners
have an effect on earnings management in basic and chemical industrial sector companies
listed on the Indonesia Stock Exchange for the 2017-2020 period.

Effect of Bonus Compensation on Earnings Management

The t-count value of -0.276 is smaller than the t-table of 1.66792. The significance level
shows 0.784 which is greater than the 0.05 significance level, it can be interpreted that bonus
compensation has no effect on earnings management in basic and chemical industrial sector
companies listed on the Indonesia Stock Exchange for the 2017-2020 period.

Effect of Ownership Structure, Firm Size, Independent Commissioner and Bonus

Compensation on Earnings Management
Obtaining a calculated F value of 4.179 is small from F table of 2.51 with a significance
level of 0.002 where the significant value is small from a significant level of 0.05, it can be
concluded that ownership structure, company size, independent commissioners and bonus
compensation simultaneously affect management profit on basic and chemical industrial
sector companies listed on the Indonesia Stock Exchange for the 2017-2020 period.

CONCLUSION

1. That partially ownership structure affects earnings management in manufacturing companies

in the basic and chemical industry sectors listed on the Indonesia Stock Exchange in 2017-
2020.
2. That partially the size of the company has an effect on earnings management in
manufacturing companies in the basic and chemical industrial sectors listed on the IDX in
2017-2020.
3. That partially independent commissioners have an effect on earnings management in
manufacturing companies in the basic and chemical industrial sectors listed on the IDX in
2017-2020.
4. That partially bonus compensation has no effect on earnings management in manufacturing
companies in the basic and chemical industrial sectors listed on the Indonesia Stock
Exchange in 2017-2020.
5. Whereas simultaneously ownership structure, company size, independent commissioners and
bonus compensation have an effect on earnings management in manufacturing companies in
the basic and chemical industry sectors listed on the Indonesia Stock Exchange in 2017-2020.

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Suggestion
1. For future research, it is possible to increase the research sample by extending the research
period. In addition, it is expected for the next researcher to add variation to the independent
variables, such as the audit committee, the size of the KAP and others.
2. For companies, the results of this study are expected to be input for companies to pay more
attention to earnings management so that the company can get more profits and minimize
company losses.
3. For investors, it is better for investors in making investment decisions to first examine how
the performance of a company and still comply with regulations regarding sales which can
better understand the occurrence of an investment from one company to another.

REFERENCES

Buku
[1] Agussalim, Manguluang. 2016.Statistika Lanjutan. Padang:Ekasakti Press
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Pustaka Setia Boediono.(2005). Ekonomi Mikro. Yogyakarta: BPFEUGM.
[3] Brigham dan Houston .2010.Dasar-Dasar Manajemen Keuangan Buku 1 Edisi
11.Salemba Empat.Jakarta
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Undang-Undang
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Kecil, dan Menengah

Artikel dari internet

[1] https://www.idx.co.id/ www.detikfinance.co

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