Indonesia Conference Directory

The aims of this research to determine the effect of information asymmetry and corporate governance mechanisms that proxied by institutional ownership, managerial ownership, and audit commitee on the earnings management occured in companies listed in Jakarta Islamic Index over the period 2015-2018. This study used purposive sampling method. These samples contained in JII are 14 companies. The data is secondary data from financial statement, annual reports, and stock historical price that are accessed through the official website of IDX: http://www.idx.co.id. Data analyzed by using multiple linear regression that processed using software Eviews version 10. The result of this research concluded that (1) Information asymmetry has no effect on earnings management that information asymmetry is not a factor that encourages management to take opportunistic actions (2) Institutional ownership has negative effect on earnings management which indicates that greater ownership of shares owned by institutional parties does lead to greater oversight efforts to prevent earnings management (3) Managerial ownership has negative effect on earnings management which indicates that the greater shareholding owned by management does reduce management-s own actions in carrying out earnings management; (4) Audit committee has a positive effect on earnings management that the presence of the audit committee effectively prevents the improvement of earnings management in the company.