Does Corporate Social Responsibility Matter in Moderating the Relationship Between Earning Management and Financial Performance? Evidence from Indonesia
Abstract
Keywords
Full Text:
PDFReferences
Abdullah, R., Mahmuda, D., Malik, E., Pratiwi, E., Rais, M., Dja’wa, A., . . . Tjilen, A. (2019). The Influence of environmental performance, environmental costs, and firm size on financial performance with corporate social responsibility as intervening variables (empirical study on manufacturing companies listed on the Indonesia stock exchange 2014-2018). IOP Conference Series: Earth and Environmental Science, 343, 012136. doi:10.1088/1755-1315/343/1/012136
Abner-Puerta, R., & Ferrer, R. (2019). The Role of Corporate Social Responsibility on the Link of Real Earnings Management With Financial Performance and Firm Value of Publicly Listed Companies in the Philippines.
Al-Shattarat, B., Hussainey, K., & Al-Shattarat, W. (2022). The impact of abnormal real earnings management to meet earnings benchmarks on future operating performance. International Review of Financial Analysis, 81, 101264. doi:https://doi.org/10.1016/j.irfa.2018.10.001
Bagh, T., Khan, M. A., Azad, T., Saddique, S., & Khan, M. A. (2017). The Corporate Social Responsibility and Firms' Financial Performance: Evidence from Financial Sector of Pakistan. International Journal of Economics and Financial Issues, 7(2), 301-308. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/4043
Ben Amar, A., & Chakroun, S. (2018). Do dimensions of corporate social responsibility affect earnings management? Journal of Financial Reporting and Accounting, 16(2), 348-370. doi:10.1108/JFRA-05-2017-0033
Boachie, C., & Mensah, E. (2022). The effect of earnings management on firm performance: The moderating role of corporate governance quality. International Review of Financial Analysis, 83, 102270. doi:10.1016/j.irfa.2022.102270
Branco, M. C., & Rodrigues, L. L. (2006). Corporate Social Responsibility and Resource-Based Perspectives. Journal of Business Ethics, 69(2), 111-132. Retrieved from http://www.jstor.org/stable/25123942
Cespa, G., & Cestone, G. (2007). Corporate Social Responsibility and Managerial Entrenchment. Journal of Economics & Management Strategy, 16(3), 741-771. doi:https://doi.org/10.1111/j.1530-9134.2007.00156.x
Chakroun, S., & Ben Amar, A. (2022). Earnings management, financial performance and the moderating effect of corporate social responsibility: evidence from France. Management Research Review, 45(3), 331-362. doi:10.1108/MRR-02-2021-0126
Chen, X., Safdar Sial, M., Tran, D. K., Alhaddad, W., Hwang, J., & Thu, P. A. (2020). Are Socially Responsible Companies Really Ethical? The Moderating Role of State-Owned Enterprises: Evidence from China. Sustainability, 12(7). doi:10.3390/su12072858
Dechow, P. M., & Skinner, D. J. (2000). Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators. Accounting Horizons, 14(2), 235-250. doi:10.2308/acch.2000.14.2.235
Duque-Grisales, E., & Aguilera-Caracuel, J. (2021). Environmental, Social and Governance (ESG) Scores and Financial Performance of Multilatinas: Moderating Effects of Geographic International Diversification and Financial Slack. Journal of Business Ethics, 168(2), 315-334. doi:10.1007/s10551-019-04177-w
Filiana, F., & Bandi, B. (2021). Earnings Management, Debt Maturity, Dividend Policy and Future Performance of Manufacturing Companies in Indonesia. Jurnal Ilmiah Akuntansi, 6(2), 394-412.
Gill, A., Biger, N., Mand, H., & Mathur, N. (2013). Earnings Management, Firm Performance, and the Value of Indian Manufacturing Firms.
Guidry, F., J. Leone, A., & Rock, S. (1999). Earnings-based bonus plans and earnings management by business-unit managers. Journal of Accounting and Economics, 26(1), 113-142. doi:https://doi.org/10.1016/S0165-4101(98)00037-8
Gujarati, D. N. (2008). Basic Econometrics. Fifth Edition. New York: McGraw Hill.
Hou, T. C.-T. (2019). The relationship between corporate social responsibility and sustainable financial performance: firm-level evidence from Taiwan. Corporate Social Responsibility and Environmental Management, 26(1), 19-28. doi:https://doi.org/10.1002/csr.1647
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360. doi:https://doi.org/10.1016/0304-405X(76)90026-X
Jiraporn, P., Miller, G. A., Yoon, S. S., & Kim, Y. S. (2008). Is earnings management opportunistic or beneficial? An agency theory perspective. International Review of Financial Analysis, 17(3), 622-634. doi:https://doi.org/10.1016/j.irfa.2006.10.005
Kao, E. H., Yeh, C.-C., Wang, L.-H., & Fung, H.-G. (2018). The relationship between CSR and performance: Evidence in China. Pacific-Basin Finance Journal, 51, 155-170. doi:https://doi.org/10.1016/j.pacfin.2018.04.006
Kumala, R., & Siregar, S. V. (2021). Corporate social responsibility, family ownership, and earnings management: the case of Indonesia. Social Responsibility Journal, 17(1), 69-86. doi:10.1108/SRJ-09-2016-0156
Kumari, P., & Pattanayak, J. K. (2017). Linking earnings management practices and corporate governance systems with the firm's financial performance. Journal of Financial Crime, 24(2), 223-241. doi:10.1108/JFC-03-2016-0020
Le, Q. L., Nguyen, L. H., Dinh, V. H., Luong, T. T. H., Pham, T. K. L., & Nguyen, T. H. L. (2023). Factors affecting corporate social responsibilities disclosure of listed companies in Vietnam. Cogent Business & Management, 10(1), 2160578. doi:10.1080/23311975.2022.2160578
Lecuyer, C., Béal, M., Capelli, S., & Sabadie, W. (2022). “More CSR versus more benefits”: how members' motives influence loyalty toward cooperatives. European Journal of Marketing, 56(8), 2309-2339. doi:10.1108/ejm-01-2021-0011
Lee, S., Singal, M., & Kang, K. H. (2013). The corporate social responsibility–financial performance link in the US restaurant industry: Do economic conditions matter? International Journal of Hospitality Management, 32, 2-10. doi:https://doi.org/10.1016/j.ijhm.2012.03.007
Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: an international comparison. Journal of Financial Economics, 69(3), 505-527. doi:https://doi.org/10.1016/S0304-405X(03)00121-1
Leuz, C., & Oberholzer-Gee, F. (2006). Political relationships, global financing, and corporate transparency: Evidence from Indonesia. Journal of Financial Economics, 81(2), 411-439. doi:https://doi.org/10.1016/j.jfineco.2005.06.006
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as a mediating variable. Asian Journal of Accounting Research, 3(1), 41-60. doi:10.1108/AJAR-06-2018-0008
Matsunaga, S. R., & Park, C. W. (2001). The Effect of Missing a Quarterly Earnings Benchmark on the CEO's Annual Bonus. The Accounting Review, 76(3), 313-332. Retrieved from http://www.jstor.org/stable/3068938
Memon, M., Ting, H., Hwa, C., Ramayah, T., Chuah, F., & Cham, T.-H. (2020). Sample Size for Survey Research: Review and Recommendations. 4, i-xx. doi:10.47263/JASEM.4(2)01
Mohammed, A., Flynn, A., & Grey, C. (2019). The link between CSR and earnings quality: evidence from Egypt. Journal of Accounting in Emerging Economies, ahead-of-print. doi:10.1108/JAEE-10-2018-0109
Ngunjiri, G. G. (2017). The Effect of Earnings Management on Financial Performance of Quoted Companies in Kenya. (Master). University of Nairobi, Nairobi. Retrieved from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/http://erepository.uonbi.ac.ke/bitstream/handle/11295/102848/Gilbert%20Gathuo%20Ngunjiri%20MSc.%20Finance%20Final%20Project.pdf?sequence=1&isAllowed=y
Nugraha, R. S., Banani, A., & Shaferi, I. (2021). The Influence of Firm Size, Leverage, Liquidity, and Sales Growth on Financial Performance (Study on Agriculture Companies in Indonesia Stock Exchange Over the Period 2014-2018) Paper presented at the International Sustainable Competitiveness Advantage.
Nuryana, Y., & Surjandari, D. A. (2019). The Effect of Good Corporate Governance Mechanism and Earning Management on Company Financial Performance. Global Journal of Management and Business Research, 19(D1), 27-39. Retrieved from https://journalofbusiness.org/index.php/GJMBR/article/view/2668
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate Social and Financial Performance: A Meta-Analysis. Organization Studies, 24(3), 403-441. doi:10.1177/0170840603024003910
Prior, D., Surroca, J., & Tribó, J. A. (2008). Are Socially Responsible Managers Really Ethical? Exploring the Relationship Between Earnings Management and Corporate Social Responsibility. Corporate Governance: An International Review, 16(3), 160-177. doi:https://doi.org/10.1111/j.1467-8683.2008.00678.x
Pyo, G., & Lee, H.-Y. (2013). he Association Between Corporate Social Responsibility Activities And Earnings Quality: Evidence From Donations And Voluntary Issuance of CSR Reports. Journal of Applied Business Research, 29(3), 945–962. doi:doi: 10.19030/jabr.v29i3.7793
Rezaei, F., & Roshani, M. (2012). Efficient or opportunistic earnings management with regard to the role of firm size and corporate governance practices.
Saleh, M., Zulkifli, N., & Muhamad, R. (2011). Looking for evidence of the relationship between corporate social responsibility and corporate financial performance in an emerging market. Asia-Pacific Journal of Business Administration, 3(2), 165-190. doi:10.1108/17574321111169849
Sameer, I. (2021). Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies. Future Business Journal, 7(1), 29. doi:10.1186/s43093-021-00075-8
Scholtens, B., & Kang, F.-C. (2013). Corporate Social Responsibility and Earnings Management: Evidence from Asian Economies. Corporate Social Responsibility and Environmental Management, 20(2), 95-112. doi:https://doi.org/10.1002/csr.1286
Scott, W. R. (2015). Financial Accounting Theory. Toronto: Pearson.
Shaikh, A.-u. H., Raza, A., Balal, S. A., Abbasi, A. R., Delioglu, N., & Shaikh, H. (2022). Analyzing Significance Of Financial Leverage On Financial Performance In Manufacturing Sector Of Pakistan. Webology, 19(2), 3465-3478.
Shibutse, R., Kalunda, E., & Achoki, G. (2019). Effect of leverage and firm size on financial performance of deposit taking savings and credit cooperatives in Kenya. International Journal of Research in Business and Social Science (2147- 4478), 8, 182-193. doi:10.20525/ijrbs.v8i5.462
Suryandari, D. A., Minanari, M., & Nurlelawati, L. (2021). The Effect of Good Corporate Governance, Leverage, Firm Size on Earning Management Evidence From Indonesia. International Journal of Commerce and Finance, 7(2), 165-183.
Susanto, A., & Widyaswati, R. (2019). The Effect of Earnings Management on Company’s Performance with Audit Quality and Company’s Size as Moderating Variables. 2019, 18(2). doi:10.35917/tb.v18i2.100
Suttipun, M., Lakkanawanit, P., Swatdikun, T., & Dungtripop, W. (2021). The Impact of Corporate Social Responsibility on the Financial Performance of Listed Companies in Thailand. Sustainability, 13, 8920. doi:10.3390/su13168920
Tabassum, N., Kaleem, A., & Nazir, M. S. (2013). Impact of Real Earnings Management on Subsequent Financial Performance.
Tran, K. H., & Duong, N. H. (2020). Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies. Cogent Economics & Finance, 8(1), 1849980. doi:10.1080/23322039.2020.1849980
Wahyuni, S., Handayani, E., & Pujiharto. (2022). Earnings Management: an Analysis of Corporate Strategy, Financial Performance, and Audit Quality. Asian Economic and Financial Review, 12(8), 593–603. doi:DOI: 10.55493/5002.v12i8.4564
Widagdo, A. K., Murni, S., Nurlaela, S., & Rahmawati. (2021). Corporate social responsibility, earnings management, and firm performance: Are the companies really ethical? IOP Conference Series: Earth and Environmental Science, 824(1), 012118. doi:10.1088/1755-1315/824/1/012118
Widyadmono, M. (2014). The impact of type of industry, company size and leverage on the disclosure of corporate social responsibility: Case on Companies listed in Indonesia Stock Exchange 2009-2012. Jurnal Siasat Bisnis, 18, 118-132. doi:10.20885/jsb.vol18.iss1.art9
Yang, Y., Orzes, G., Jia, F., & Chen, L. (2021). Does GRI Sustainability Reporting Pay Off? An Empirical Investigation of Publicly Listed Firms in China. Business & Society, 60(7), 1738-1772. doi:10.1177/0007650319831632
DOI: http://doi.org/10.33312/ijar.759
Refbacks
- There are currently no refbacks.
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The Indonesian Journal of Accounting Research (IJAR)
Ikatan Akuntan Indonesia
Graha Akuntan, Jl. Sindanglaya No.1 Menteng, Jakarta Pusat 10310
Editorial Secretariat
CP : Farinza
Phone : +62 812-2848-2829
Fax : +62 274 524606
Website: http://ijar-iaikapd.or.id/
Email : sekretariat@ijar-iaikapd.or.id
Marketing and Sales Office
CP : Reza Fauzi
Divisi Pelayanan, Keanggotaan dan Mitra IAI.
Grha Akuntan, Jl. Sindanglaya No.1, Menteng.
Telp.021-31904232 Ext.324/321
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ISSN 2086-6887 (Print)ISSN 2655 - 1748 (online)
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------