THE IMPACT OF INDEPENDENT COMMISSIONERS AND DIVIDENDPAYING STATUS TOWARD EARNINGS QUALITY IN INDONESIA YEAR 2014-2016

Septiana, Hana Shelina (2018) THE IMPACT OF INDEPENDENT COMMISSIONERS AND DIVIDENDPAYING STATUS TOWARD EARNINGS QUALITY IN INDONESIA YEAR 2014-2016. S1 thesis, UAJY.

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Abstract

This research focuses on the impact of independent commissioners and dividend-paying status toward earnings quality in Indonesia year 2014-2016. It uses manufacturing company listed in Indonesia Stock Exchange (IDX) during 2014-2016 as its samples. The purposive sampling is used in choosing the sample of this research. The data used in this research is secondary data taken from Indonesia Stock Exchange (IDX) website, www.idx.co.id. The percentage of independent commissioners will be used to measure independent commissioners; dividend dummy will be used to measure dividend-paying status; and discretionary accruals will be used to measure earnings quality. Based on POJK Number 33 Year 2014, a company should have at least 30 percent of independent commissioners. The existence of independent commissioners is assumed to be important for a company. It makes the company prefer to have independent commissioners to increase the internal control, so the earnings manipulation can be low. At the end, the quality of earnings will increase. Dividendpaying status is considered as a tool to reduce agency conflict. The decision of dividend payment is decided on RUPS which attended by shareholders. It means that shareholders involve directly and consciously in making the decision to pay dividend or not. Therefore, investors prefer to use the other information of the company to measure its performance and predict earnings quality so, the dividend-paying status will affect earnings quality insignificantly.

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