PERAN CORPORATE GOVERNANCE DALAM MEMODERASI PENGARUH EARNINGS MANAGEMENT TERHADAP PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY (Studi Empiris pada Perusahaan Manufaktur yang terdaftar di BEI Tahun 2008-2010)

Abstract

This research was aimed to examine empirically: (1) The influence of earnings management to CSR disclosure (2) The role of corporate governance mechanism as moderating variable in the relationship between earnings management and CSR disclosure. Corporate governance mechanism was analyzed by proportion of independent commissioner, the number of audit committee meetings and institusional ownership. Earnings management was measured by discretionary accruals use Modified Jones Model and the extent of CSR was measured used corporate social disclosure index (CSDI) based on Global Reporting Initiative (GRI) reporting standard items which were disclosed in companies annual report. This research used samples on manufacturing companies among 2008-2010 by using purposive sampling method. Data used in this study was taken from annual reports and sustainable reports of manufacturing companies listed on the IDX. There are 75 companies among 2008-2010 which fulfilling. The method of analysis of this research was multiple regression. This method was chosen because the independent variables are more than one and all the data of the variables are metric. The reseach found no significant statistical effect from various measurement of earnings management to CSR disclosure. The research also found there is no significant effect on proportion of independent commissioner and institusional ownership in relationship between EM and CSR Disclosure. Meanwhile, the number of audit committe meetings has significant effect the relationship between EM and CSR disclosure. The founds used by investors and creditors to make investment and credit decision. The research contributed to the literature in that has shown that CSR disclosure is driven by the desire to fulfill stakeholders expectation and not caused earnings management. However, this research found that the corporate governance mechanism didn’t work effectively, so it’s suggested that creditors and investors to be more careful in analyzing a financial reporting.