Governance Issues on Earning Management: A Case of Manufacturing Industry

Earnings management is a technique used by the of an organization to intentionally manipulate company's profits in such way that figures suit agreed target and generate financial results provide excessively optimistic view operation finances. Due poor performance, companies are using different strategies exploit positive picture profitability look better eyes shareholders stakeholders, this generally referred as earnings management. This study aims examine potential factors pressure (financial stability target), opportunity (board independence audit committee), arrogance (CEO duality CEO's picture) cause manufacturing Malaysia. organizations unit analysis while from Public Listed Companies (PLCs) were chosen research sample. found proxies board independence, committee, have relationship with Adversely, indicators stability, target, CEO negative effects on incidence