CORRELATION ANALYSIS OF LEVERAGE AND THE APPLICATION OF GOOD CORPORATE GOVERNANCE TO PROFIT MANAGEMENT IN THE HEALTHCARE INDUSTRY

Abstract

Earnings management is the top goal that can provide satisfaction during the company's period, the emergence of differences in Leverage and the implementation of Good Corporate Governance which is still not informative. The aim is to determine the Leverage and the application of Good Corporate Governance to earnings management. Quantitative research method, data from non-participant surveys, 17 samples of the 2019-2021 Indonesia Stock Exchange financial ratios, analysis techniques using the Smart PLS and SPSS 25 multiple regression analysis paths. The results showed that Leverage as an additional signifier and patchwork had an effect on Profit Management by 0.79%, Implementation of Good Corporate Governance as the operational knife point of the company, Proven to have an effect on Profit Management by 19.62%, Ideal profit management is carried out to increase company leverage through the results of Good implementation Accurate company Corporate Governance, Leverage is proven through the implementation of Good Corporate Governance has an effect on Profit Management of 3.94% and High profit management will be better if the practice of corporate leverage is accompanied by an increase in the application of Good Corporate Governance. It is proven by the results of this study that there is a simultaneous effect of Leverage and application of Good Corporate Governance to Profit Management of 43.16%. Suggestions for improving corporate earnings management need to pay attention to the implementation of Good Corporate Governance so that it reaches 472% or close to 50% when compared to the increase in leverage of 472%, so that it is balanced. The implication is that company owners can create an annual Good Corporate Governance program, by reviewing the main achievement indicators of each quarterly financial report, thereby receiving accurate and relevant information.