53
3. Moderating Variable
The moderating variable is the one that has strong contingent effect on the independent variable-dependent variable relationship. That is, the
presence of a third variable the moderating variable modifies the original relationship between the independent and the dependent variables
Sekaran 2010:73. a. Board of Directors BOD is fully responsible for the management of
the company effective and efficient in order to achieve the companys goals. Therefore, According to Linck et al 2008 Board of Directors
size measured by the number of Board of Directors member in the company.
b. Managerial ownership MO is the ownership by the shareholders who have a management position in the company like directors and
commissioners. According to Setyawan, 1999 in Faisal, 2004 The Managerial ownership measured by the total percentage of managerial
ownership in a company. c. Institutional Ownership IO is ownership by the government, financial
institutions, incorporated institutions, foreign institutions, and other institutions in a company. According to Muwaningsari 2007 stated
that the Institutional ownership is measured by the total percentage of institutional ownership in a company.
54
Table 3.1 Summary of variable operational research
No Variable Measure
Scale
1 Earnings Management
Total number of board director
Ratio 2
Board of Directors BOD
The total number of board of directors
members
Rasio
3 Managerial ownership
MO of shares owned by
managerial Rasio
4 Institutional Ownership
IO of shares owned by
institutional Rasio
5 Firm Value
Tobin’s Q = Rasio
55
CHAPTER IV RESULT AND ANALYSIS
A. General Description of Research Object
This chapter presents and discusses the findings of the research. The population of this research is real estate business listed in IDX within period
2012-2014. The selection of sample is chosen by criteria of population that have explained in research methodology in previous chapter that is taken as
annually in 2012-2014.
In 2012-2014, Real estate business that go public in Indonesia Stock Exchange are 50 companies. This research is used purposive sampling. And
from 50 companies, regarding on criteria of sampling in previous chapter, so the amount of sampling are 12 companies. This research will use pooling
data method in which the variable will be tasted in three year, so the total
sample are 36 samples of annual report.
Companies that become the sample is the company that fulfill the criteria
of the sample in this research:
