The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable

Abstract

Purpose -The purpose of this paper is to determine the direct influence of the mechanism of good corporate governance (GCG) and corporate social responsibility (CSR) on financial performance as well as through earnings management as a mediating variable. Design/methodology/approach -The data used in this research are secondary data involving 102 companies listed on the Indonesian Stock Exchange for the period 2014. The data used in this study were analyzed using partial least square and carried out with the help of software WarpPLS 5.0. Findings -The results show that the mechanism of GCG and CSR has a positive effect on financial performance as well as the CSR on financial performance. Originality/value -The results also show partial mediation of earnings management on impact of GCG mechanisms on financial performance and full mediation of earnings management on impact of CSR on financial performance.

The Role of Mediating the Publication on the Influence of Corporate Governance on Performance

“…In Table 10 model b.3, shows the t-count value of -1.13 or <1.965 which means it is not significant, then it cannot reject H0 which means H1 is rejected. These results support the results of the study that the effect of corporate governance is not directly on financial performance, but contrary to the results of research [25], [22], [28], [6], [7], [8].…”

“…Audit committee meetings can oversee the financial accounting process, because of their expertise and experience (Zhizhong et al, 2011), [2], [27]. The frequency of meetings can affect improving company performance with qualified auditors [28]. The existence, independence and expertise of the audit committee can produce meeting effectiveness that speeds up the publication of financial statements [10], [11], [20], [29], [18], the hypothesis is arranged: H1g: Frequency of audit committee meetings (CAM) has a positive effect on performance (PER).…”

Peran Corporate Social Responsibility dan Tax Avoidance dalam Mempengaruhi Good Corporate Governance terhadap Value Creation

“…Reduksi terhadap konflik keagenan dapat menimbulkan kepercayaan pemegang saham. Perusahaan dianggap telah mengimplementasikan prinsip transparansi yang memfokuskan pada keterbukaan informasi dalam proses pengambilan keputusan sehingga berdampak pada kepercayaan pemegang saham (Mahrani & Soewarno, 2018;Retno M. & Priantinah, 2012).…”

Interaksi Manajemen Laba Dalam Pengungkapan Corporate Social Responsibility Dan Kinerja Keuangan Sektor Manufaktur Di Bursa Efek Indonesia (Bei)

“…Namun penelitian tidak berhasil membuktikan bahwa pengungkapan CSR akan berdampak signifikan terhadap kinerja keuangan. Penelitian ini sejalan dengan penelitian yang dilakukan oleh Mahrani & Noorlailie (2018) yang menyatakan bahwa pengungkapan CSR tidak mempengaruhi kinerja keuangan. Hasil penelitian ini juga sejalan dengan studi Rafianto (2014) bahwa kinerja lingkungan tidak berpengaruh terhadap kinerja keuangan maupun studi Kusuma & Syarifuddin (2014) yang menyatakan bahwa pengungkapan CSR memiliki pengaruh tidak signifikan terhadap kinerja keuangan.…”