CORPORATE GOVERNANCE DAN MANAJEMEN LABA
Information on profit measure the success or failure of the business in achieving the objectives set operation. The theory of agency (agency theory) implies the existence of information asymmetry between managers as agents and owners (in this case a shareholder) as a principal. Information asymmetry arises when managers more aware of internal information and prospects of the company in the future compared to the shareholders and other stakeholders.
One form of irregularities committed by the management as an agent, which is in the process of preparing financial statements management can affect the rate of profit shown in the financial statements or often called earnings management (earnings management), so as to make investors lose confidence in their investments, and causing investors withdraw funds that have invested previously. Corporate governance is a system that regulates and controls the company is expected to provide and enhance the company's value to shareholders. Application of corporate governance mechanisms can be done between the activating role of the board of independent directors, institutional ownership and audit committee in order to control the actions of management to always perform their functions to enhance shareholder value.
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© All rights reserved 2015. At-tijaroh: Jurnal Ilmu Manajemen dan Bisnis Islam. ISSN: 2356-4692X