Real Earning Management, Governance Structures and Cost of Equity of the Companies Listed on the Market for Alternative Investment (MAI)
Keywords:
Real Earning Management, Structures of Shareholders, Audit Committee, Cost of EquityAbstract
The purpose of this research was to investigate the influence of the real earning management on governance structure and cost of equity as well as the influence of the governance structure on the cost of equity through real earning management. The research method was quantitative research. The samples were selected by collectingthe finance reports of the companies registered in the Market for Alternative Investment (MAI) from the year 2016 to 2020. The data collected in this study were analyzed using the Structural Equation Model (SEM).The results of the study were found that the development of the casual relations of the real earning management, the governance structure towards the cost of equity was appropriate and in congruence with the empirical data and the governance structure on the part of shareholders who had influences on the cost of equity, the proportion of the auditcommittee who were knowledgeable and skillful on finance and accounting, had influences on real earning management and real earning managementhad influences on the cost of equity with statistical significance at level 0.05.
References
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