SNA XII - AKPM 99

PENGARUH KECAKAPAN MANAGERIAL TERHADAP

MANAGEMEN LABA DENGAN KUALITAS AUDITOR

SEBAGAI VARIABEL PEMODERASI

Universitas Gadjah Mada Yogyakarta

The objective of this study is to investigate the impact of managerial ability on earnings management. Furthermore, this study also examines the effect of auditor quality on the relationship between managerial ability and earnings management.

The sample of the study is the manufacturing companies listed in the Indonesian Stock Exchange. The number of the samples of the company is 99 (396 firms-year). The managerial ability is measured using Data Envelopment Analysis (DEA). The earnings management is measured using modified Jones model. The quality of auditor is measured using the perception of the users of financial report on auditor quality by categorized between auditor from big four audit firm (high quality) and auditor from non big four audit firm (low quality).

The result indicated that the managerial ability had an impact on the earnings management. However, auditor quality did not have any impact on the relationship between managerial ability and earnings management.

Keywords: managerial ability, earnings management, auditor quality, Data Envelopment Analysis (DEA)