ABSTRACT
The purpose of this research is to find out the influence of Related Party Transactions (RPT) in receivables and payable on the earning management practice in Indonesian banks companies. In research of Jian and Wong (2003) found that the RPT are a tool of earning management. This research uses 89 samples from banks companies which were listed in Indonesian Stock Exchange for the period of 2009 until 2011. The independent variables of this research are RPT on receivables was measured by divide the total RPT on receivables to total assets of companies and RPT on payables was measured by divide the total RPT on payables to the total companies liabilities, the dependent variable is earning management was measured by using Beaver and Engel model. The r esearch hypotheses were tested using multiple regressions.
The results of this research showed that RPT on receivables, RPT on payables had no significant influence on earning management practice simultaneously. And partially, RPT on receivables and RPT on payables also had no influence on earning management practice in bank companies
