Profit Management and Extent of Sustainability Report Disclosure with Good Corporate Governance as a Moderating Variable

Title: Profit Management and Extent of Sustainability Report Disclosure with Good Corporate Governance as a Moderating Variable

Author: Disty Amelinda Wahyudi

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

Sustainability report (SR) disclosure is a form of corporate social responsibility (CSR) activity that can be used as a tool to divert stakeholder attention from management's opportunistic behavior (profit management). Earnings management carried out by management if it is revealed will cause the manager to lose his reputation and even his job, so management uses SR disclosure to provide a good image so that it will gain support and trust from stakeholders. Agency theory which separates owners and management causes the need for a monitoring system so that management contracts can be achieved without harming any party. Good corporate governance (GCG) exists to supervise contractual relationships and direct the company's operations in accordance with applicable regulations to achieve management contracts. This research seeks to prove the influence of accrual earnings management on the extent of SR disclosure with GCG moderation. Using a sample of companies that registered for the Corporate Governance for Performance Index (CGPI) in 2015-2018, this research was carried out using quantitative methods with multiple linear regression analysis and moderated regression analysis (MRA).

Keywords: Corporate social responsibility, Sustainability Report, Good Corporate Governance, Earnings Management

Sources: http://repository.unair.ac.id/96823/