The Effect of Good Corporate Governance and Cost Components on the Tradeoff Between Real and Accrual Earning Management in Conventional Bank - (Empirical Study on Conventional Banks Listed in Indonesia Stock Exchange)

This study aims to examine the Effects of Good Corporate Governance and Cost Component on the Trade Off between Real and Accrual Earnings Management in conventional banks. The population of this research was in Conventional Bank that listed on the Indonesia Stock Exchange in 2013-2017. This study uses a sample of 20 conventional banks through purposive sampling method. The methodology of this research uses panel data regression analysis with EViews Version 10 as a statistical test tool. The results of the study show that good corporate governance which measured by audit committee effectiveness, seen from the number of audit committee members who has a accounting background show no significant effect on the real earning management but have a significant negative effect on the accrual earnings management. While the audit committee effectiveness which seen from the attendance percentage of the audit committee meeting has no significant effect on the real or accruals earnings management. There is no significant effect of audit fee, BOPO, cost of fund variables on the real and accrual earnings management. NOA variable has no significant effect on the real earnings management but have a negative effect on the accrual earnings management.