PROFIT MANAGEMENT: THE EFFECT OF CORPORATE GOVERNANCE MECHANISM AND GOOD CORPORATE GOVERNANCE

This research is motivated by the importance of good corporate governance in
companies. This study aims to identify and analyze the influence of corporate
governance and good corporate governance mechanisms on profit management. The
research method used in this research is descriptive method with a quantitative
approach. The sample in this study were 100 employees of private companies using
random sampling technique. Data collection uses a questionnaire distributed to
employees of private companies. The instruments used have been tested for validity
and reliability. The collected data were analyzed using the classical assumption test
and multiple linear regression with SPSS tools. The results of this study indicate that
1) The mechanism of corporate governance has a positive and significant effect on
profit management, 2) Good corporate governance has a positive and significant
effect on profit management, and 3) The mechanism of corporate governance and
good corporate governance has a positive and significant effect on profit
management. The findings of this study indicate that if companies want to improve
profit management, companies must also improve corporate governance and good
corporate governance mechanisms.