PROFIT MANAGEMENT: THE EFFECT OF CORPORATE GOVERNANCE MECHANISM AND GOOD CORPORATE GOVERNANCE

Ricky Ricky (Universitas Widya Dharma Pontianak)
Lusi Endang Sri Darmawati (Pendidikan Ekonomi STKIP PGRI Situbondo)
Teguh Setiawan Wibowo (STIE Mahardhika Surabaya)
Mega Arisia Dewi (Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya)
Agung Kristiawan (Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya)

International Journal of Economics, Business and Accounting Research (IJEBAR)
Vol 7 No 2 (2023): IJEBAR, VOL. 07 ISSUE 02, JUNE 2023

This research is motivated by the importance of good corporate governance in companies. This study aims to identify and analyze the influence of corporate governance and good corporate governance mechanisms on profit management. The research method used in this research is descriptive method with a quantitative approach. The sample in this study were 100 employees of private companies using random sampling technique. Data collection uses a questionnaire distributed to employees of private companies. The instruments used have been tested for validity and reliability. The collected data were analyzed using the classical assumption test and multiple linear regression with SPSS tools. The results of this study indicate that 1) The mechanism of corporate governance has a positive and significant effect on profit management, 2) Good corporate governance has a positive and significant effect on profit management, and 3) The mechanism of corporate governance and good corporate governance has a positive and significant effect on profit management. The findings of this study indicate that if companies want to improve profit management, companies must also improve corporate governance and good corporate governance mechanisms.