The Effects of Good Corporate Governance and Financial Leverage on Earnings Quality with Book-Tax Differences as Moderation Variables (Study of Manufacturing Companies in the Indonesian Stock Exchange)
Abstract
This study aimed to find out and analyze the variables that affect earnings quality by including book-tax differences as a moderating variable to see the relationships between variables. The model testing in this study was carried out on 91 listed companies on the Indonesia Stock Exchange within the period of 2007-2016. The data obtained were analyzed using e-views 10 and a random effect model was obtained where the random effect estimation model was used to examine the effect of Good Corporate Governance (GCG) and Financial Leverage with Book Tax Differences as moderating variables. The results showed that there was a positive and significant effect among good corporate governance variables on earnings quality, and there was a positive and significant effect between financial leverage variables on earnings quality. To see the effect of the book-tax differences in variable as a moderating variable, MRA was used.The results obtained to state that the book-tax differences variable strengthens the relationship between good corporate governance and earnings quality. The variables of book-tax differences do not strengthen or weaken the relationship between financial leverage and earnings quality,
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Keywords: Good corporate governance, financial leverage, book-tax differences, and earnings quality.
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PDF (Bahasa Indonesia)DOI: https://doi.org/10.32672/pic-mr.v3i2.2698
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ISSN:Â 2808-6929