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

Authors: Disty Amelinda Wahyudi

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

Publisher: Universitas Airlangga

Abstract

Disclosure of sustainability reports (SR) is a form of corporate social responsibility (CSR) activity that can be used as a tool to divert stakeholder attention from opportunistic management behavior (earnings management). Disclosure of earnings management by management can cause managers to lose their reputations and even their jobs, so management uses SR disclosure to project a positive image and gain stakeholder support and trust. Agency theory, which separates owners and management, necessitates a monitoring system to ensure management contracts are achieved without harming any party. Good corporate governance (GCG) exists to oversee contractual relationships and direct the company's operations in accordance with applicable regulations to achieve management contracts. This study attempts to demonstrate the effect of accrual earnings management on the extent of SR disclosure with GCG moderation. Using a sample of companies registered with the Corporate Governance for Performance Index (CGPI) in 2015-2018, this study was conducted 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/