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ISSN : 1738-3110

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Vol.19 No.11

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Gender Diversity, Institutional Ownership and Earning Management: Case on Distribution Industry in Indonesia

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2021, v.19 no.11, pp.17-25
https://doi.org/https://doi.org/10.15722/jds.19.11.202111.17
ZUBAIDAH, Siti
IRAWAN, Dwi
SUMARWIJAYA, Sumarwijaya
WIDYASTUTI, Aviani
ARISANTI, Ike
ZUBAIDAH,, S. , IRAWAN,, D. , SUMARWIJAYA,, S. , WIDYASTUTI,, A. , & ARISANTI,, I. (2021). Gender Diversity, Institutional Ownership and Earning Management: Case on Distribution Industry in Indonesia. The Journal of Distribution Science, 19(11), 17-25, https://doi.org/https://doi.org/10.15722/jds.19.11.202111.17

Abstract

Purpose: This study aims to examine the effect of gender diversity and institutional ownership on earnings management in distribution industry sub-sector companies listed on the Indonesia Stock Exchange in 2017-2018. Research design, data and methodology: This research is case study research, where the population in this study are all distribution sub-sector companies listed on the IDX in 2017-2018. The sample selection technique used was purposive sampling and obtained 74 companies with the 2017-2018 research period. Multiple linear regression analysis was used in this study, using Stata 17. Results: The results of this study indicate that: 1) Gender diversity has a negative effect on earnings management. 2) Institutional ownership has a negative effect on earnings management. Conclusions: This study contributes to the agency theory where gender diversity and institutional ownership can reduce the agency conflict that the shrinkage of earnings management. These results indicate that companies in which there are female directors will reduce earnings management practices, this is due to the attitude of female directors who tend to avoid risk. The results also show that institutional ownership will also lead to reduced levels of earnings management, because institutional investors will increase its oversight of the company.

keywords
Gender Diversity, Institusional Ownership, Earning Management, Agency Theory, Distribution Industry

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