Abstract
This paper describes the research which investigates the moderating effect of corporate governance (CG) on the relationship of earnings management (EM) practices and corporate social responsibility (CSR) disclosure in companies listed on the Indonesia Stock Exchange. EM used in this study is the different between discretionary realized security gain or loss and discretionary loan loss provition. Data is obtained by purposive sampling process with a total sample of 138 out of 46 banking sector companies. The results showed that EM had not effect on CSR and audit committee has a negative effect on CSR, but independent commissioner does not affect CSR if tested together with EM.
This study examined the effect of earnings management and the board of directors on corporate social responsibility disclosure. In this study, earnings management is measured using the modified Jones model, while corporate social responsibility disclosure is calculated using the corporate social responsibility disclosure index (CSRI). This study uses the CSRI index based on the Global Reporting Initiative (GRI) reporting standards disclosed by companies in their annual reports. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in the 2017-2021 period that met the sample criteria. This research was conducted with a regression analysis model. The results of this study state that earnings management positively influences corporate social responsibility disclosure, and corporate governance proxied by the board of directors negatively affects corporate social responsibility disclosure
This paper describes the research which investigates the relationship of corporate social responsibility (CSR) disclosure and earnings management (EM) practices in banking companies listed on the Indonesia Stock Exchange for the fiscal year ending 31 December 2015 to 2017. EM used in this study is the different between discretionary realized security gain or loss (RSGL) and discretionary loan loss provition (LLP) from the Grougiou et.al., (2014) research model. Data is obtained by purposive sampling process and both from the IDX and from the websites of each bank. The research hypothesis was tested using ordinary least square .The results showed that CSR does not affect on EM. The results also show that independent commissioner has a significant negative effect on EM and audit committe does not affect EM. This research is expected to contribute to the existing literature by completing and enriching findings the effect of independent commissioner on the earnings management practices.
This study aims to examine the effect of real earnings management on firm value with corporate governance as a moderating variable. The data used in this study are manufacturing companies listed on the Indonesia Stock Exchange for the fiscal year ending December 31, 2015 to 2019. The data collection technique is purposive sampling and comes from secondary data both from the IDX and from the website of each company. The research hypotheses were tested using regression analysis. The results of the study prove that corporate governance can weaken the relationship between real earnings management and firm value. Meanwhile, the direct influence of earnings management on firm value was not found to have a negative relationship, but the results were positive. This research is expected to contribute to the development of theories related to earnings management behavior and corporate governance practices, namely agency theory. Other contributions can be used as input for investors in assessing the company, especially those related to the transparency of the company's financial reporting.
Keywords: Abnormal Cash Flow From Operations; Corporate Governance; Firm Value; Agency Theory.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.