Abstract :
This research explain phenomenas of the financial reporting quality,
especially earnings quality that is determined by factors of corporate governance
mechanism, namely the mechanism of institusional ownership, managerial
ownership, composition of board of commissioner, and auditor quality.
Financial report be conviced as a quantitative information which very useful
in taking decision. Many companies are very often to provide a financial report in
well presentation to maximaize of prosperity and company market value, it is called
earnings management. in that case same treatments are able to applied as long as in
right principles. Yet it can make a miss decision making and to result low quality of
earnings.
The high earnings quality is earning which describe business prospect and
realistic management treatment in considering reality business. A company earning
report with a low quality same as incredible financial report.