The influence of csr on earning management by considering the antecedent variables of csr disclosure, csr performance, and ceo ability
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Dec 13, 2023
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Abstract
This research aims to investigate the influence of Corporate Social Responsibility (CSR) on earnings management practices by considering antecedent variables, such as CSR Disclosure, CSR Performance, and the Chief Executive Officer (CEO) ability. The research method used a quantitative approach with panel data from 2017 to 2022, involving non-financial companies listed on the Indonesian Stock Exchange. The results of data analysis indicate that CSR Disclosure (CSRD), CSR Performance (KCSR), and CEO Ability (CSRA) influence earnings management practices. The classical assumption test validates normality, without multicollinearity, autocorrelation, and heteroscedasticity in the model. The coefficient of determination (R^2) is 4,3%, indicating that the three independent variables explain a small portion of the variation in earnings management. The F statistical test confirms the significance of the influence of independent variables on earnings management. The individual parameter test shows that CEO Ability (CSRA) has no significant influence, while CSR Performance (KCSR) and CSR Disclosure (CSRD) have a negative and significant influence on earnings management practices. In conclusion, earnings management practices are influenced by CSR Performance and CSR Disclosure, but not by CEO Ability.
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How to Cite
Nabila, N., & Saiful, S. (2023). The influence of csr on earning management by considering the antecedent variables of csr disclosure, csr performance, and ceo ability. Enrichment : Journal of Management, 13(5), 3009-3015. https://doi.org/10.35335/enrichment.v13i5.1734
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García‐Sánchez, I., & Araújo‐Bernardo, C. (2020). What colour is the corporate social responsibility report? Structural visual rhetoric, impression management strategies, and stakeholder engagement. Corporate Social Responsibility and Environmental Management, 27(2), 1117–1142.
Hakim, A. R., Mora, L., & Rahmawati, S. (2022). Analisis data penelitian kuantitatif untuk skripsi. UAI Press.
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Kim, J., Cho, K., & Park, C. K. (2019). Does CSR assurance affect the relationship between CSR performance and financial performance? Sustainability (Switzerland), 11(20). https://doi.org/10.3390/su11205682
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Ruwanti, G., Chandrarin, G., & Assih, P. (2019). Corporate social responsibility and earnings management: The role of corporate governance. Humanities & Social Sciences Reviews, 7(5), 1338–1347.
Scholtens, B., & Kang, F. (2013). Corporate social responsibility and earnings management: Evidence from Asian economies. Corporate Social Responsibility and Environmental Management, 20(2), 95–112.
Sugiyono. (2018). Metode penelitian manajemen.
Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (1st ed.). Penerbit Alfabeta.
Sugiyono, D. (2020). Metode Penelitian Kuantitatif, Kualitatif, dan R&D.
Sunarta, I. N., & Astuti, P. D. (2023). ACCOUNTING INFORMATION SYSTEM QUALITY AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF ACCOUNTING INFORMATION QUALITY. International Journal of Professional Business Review, 8(3). https://doi.org/10.26668/businessreview/2023.v8i3.1192
Usman, B., Bernardes, O. T. F., & Kananlua, P. S. (2020). On the nexus between csr practices, esg performance, and asymmetric information. Gadjah Mada International Journal of Business, 22(2), 151–177. https://doi.org/10.22146/gamaijb.54053
Velte, P. (2020). Corporate social responsibility and earnings management: A literature review. Corporate Ownership & Control, 17(2), 8–19.
Wang, Z., Hsieh, T. S., & Sarkis, J. (2018). CSR Performance and the Readability of CSR Reports: Too Good to be True? Corporate Social Responsibility and Environmental Management, 25(1). https://doi.org/10.1002/csr.1440
Yip, E., Van Staden, C., & Cahan, S. (2011). Corporate social responsibility reporting and earnings management: The role of political costs. Australasian Accounting, Business and Finance Journal, 5(3), 17–34.
Crossley, T. F., Schmidt, T., Tzamourani, P., & Winter, J. K. (2021). Interviewer effects and the measurement of financial literacy. Journal of the Royal Statistical Society. Series A: Statistics in Society, 184(1). https://doi.org/10.1111/rssa.12617
Elmaghrabi, M. E. (2021). CSR committee attributes and CSR performance: UK evidence. Corporate Governance (Bingley), 21(5). https://doi.org/10.1108/CG-01-2020-0036
Gao, J., Hartmann, F. G. H., Zhang, M., & Chen, Y. (2023). The impact of CSR performance and CSR disclosure readability on investors’ earnings estimates. Accounting and Finance, 63(S1). https://doi.org/10.1111/acfi.12938
García‐Sánchez, I., & Araújo‐Bernardo, C. (2020). What colour is the corporate social responsibility report? Structural visual rhetoric, impression management strategies, and stakeholder engagement. Corporate Social Responsibility and Environmental Management, 27(2), 1117–1142.
Hakim, A. R., Mora, L., & Rahmawati, S. (2022). Analisis data penelitian kuantitatif untuk skripsi. UAI Press.
Jarboui, A., Dammak Ben Hlima, N., & Bouaziz, D. (2023). Do sustainability committee characteristics affect CSR performance? Evidence from India. Benchmarking, 30(2). https://doi.org/10.1108/BIJ-04-2021-0225
Khoo, E. S., Chen, L., & Monroe, G. S. (2023). Shareholder election of CSR committee members and its effects on CSR performance. Journal of Business Finance and Accounting, 50(3–4). https://doi.org/10.1111/jbfa.12643
Kim, J., Cho, K., & Park, C. K. (2019). Does CSR assurance affect the relationship between CSR performance and financial performance? Sustainability (Switzerland), 11(20). https://doi.org/10.3390/su11205682
Kliestik, T., Belas, J., Valaskova, K., Nica, E., & Durana, P. (2021). Earnings management in V4 countries: The evidence of earnings smoothing and inflating. Economic Research-Ekonomska Istraživanja, 34(1), 1452–1470.
Koh, K., Li, H., & Tong, Y. H. (2023). Corporate social responsibility (CSR) performance and stakeholder engagement: Evidence from the quantity and quality of CSR disclosures. Corporate Social Responsibility and Environmental Management, 30(2). https://doi.org/10.1002/csr.2370
Langelo, J. S., Widjajanti, K., & Indarto, I. (2021). PENGARUH FAMILY FIRM TERHADAP PELAKSANAAN CORPORATE SOCIAL RESPONSIBILITY: COPORATE GOVERNANCE SEBAGAI MODERASI. Ekonis: Jurnal Ekonomi Dan Bisnis, 23(1).
Liu, J., Zhu, Y., & Yan, J. (2022). Exploring The Role of Guanxi in CSR performance and Knowledge Management of a Stakeholder Network: A Case of iStone, China. Psychology Research and Behavior Management, 15. https://doi.org/10.2147/PRBM.S368892
Martono, N. (2016). Metode Penelitian Kuantitatif Analisis Data dan Analisis Data Sekunder. Raja Grafindo Persada.
Muawanah, U., & Hayati, N. (2019). Analisis Corporate Social Responsibility dan Nilai Perusahaan: Dampak Variabel Kontekstual. Akuntabilitas, 12(1), 93–104.
Muchiri, M. K., Erdei-Gally, S., & Fekete-Farkas, M. (2022). Effect of CSR on the Financial Performance of Financial Institutions in Kenya. Economies, 10(7). https://doi.org/10.3390/economies10070174
Phillips, S., Thai, V. V., & Halim, Z. (2019). Airline Value Chain Capabilities and CSR Performance: The Connection Between CSR Leadership and CSR Culture with CSR Performance, Customer Satisfaction and Financial Performance. Asian Journal of Shipping and Logistics, 35(1). https://doi.org/10.1016/j.ajsl.2019.03.005
Radu, C., & Smaili, N. (2022). Alignment Versus Monitoring: An Examination of the Effect of the CSR Committee and CSR-Linked Executive Compensation on CSR Performance. In Journal of Business Ethics (Vol. 180, Issue 1). https://doi.org/10.1007/s10551-021-04904-2
Rashid, A. (2020). Institutional shareholding and corporate social responsibility reporting: evidence from Bangladesh. Journal of Asia Business Studies, 15(1), 153–173.
Ratmono, D., & Sagala, W. M. (2015). Pengungkapan corporate social responsibility (CSR) sebagai sarana legitimasi: dampaknya terhadap tingkat agresivitas pajak. Nominal Barometer Riset Akuntansi Dan Manajemen, 4(2), 16–30.
Ruwanti, G., Chandrarin, G., & Assih, P. (2019). Corporate social responsibility and earnings management: The role of corporate governance. Humanities & Social Sciences Reviews, 7(5), 1338–1347.
Scholtens, B., & Kang, F. (2013). Corporate social responsibility and earnings management: Evidence from Asian economies. Corporate Social Responsibility and Environmental Management, 20(2), 95–112.
Sugiyono. (2018). Metode penelitian manajemen.
Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (1st ed.). Penerbit Alfabeta.
Sugiyono, D. (2020). Metode Penelitian Kuantitatif, Kualitatif, dan R&D.
Sunarta, I. N., & Astuti, P. D. (2023). ACCOUNTING INFORMATION SYSTEM QUALITY AND ORGANIZATIONAL PERFORMANCE: THE MEDIATING ROLE OF ACCOUNTING INFORMATION QUALITY. International Journal of Professional Business Review, 8(3). https://doi.org/10.26668/businessreview/2023.v8i3.1192
Usman, B., Bernardes, O. T. F., & Kananlua, P. S. (2020). On the nexus between csr practices, esg performance, and asymmetric information. Gadjah Mada International Journal of Business, 22(2), 151–177. https://doi.org/10.22146/gamaijb.54053
Velte, P. (2020). Corporate social responsibility and earnings management: A literature review. Corporate Ownership & Control, 17(2), 8–19.
Wang, Z., Hsieh, T. S., & Sarkis, J. (2018). CSR Performance and the Readability of CSR Reports: Too Good to be True? Corporate Social Responsibility and Environmental Management, 25(1). https://doi.org/10.1002/csr.1440
Yip, E., Van Staden, C., & Cahan, S. (2011). Corporate social responsibility reporting and earnings management: The role of political costs. Australasian Accounting, Business and Finance Journal, 5(3), 17–34.