THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE ON FIRM VALUE: THE MODERATING ROLE OF EARNINGS MANAGEMENT (An Empirical Study in Manufacturing Companies Listed on Indonesia Stock Exchange (IDX) from 2014-2016)

Abstract

This research aims to determine the influence of corporate social responsibility disclosure on firm value with the moderating role of earnings management. Firm value is measured with Tobin’s Q, corporate social responsibility is measured with CSR disclosure index, and earnings management is measured with discretionary accruals. The control variables of this research are cash-flow to total assets, firm size, leverage, institutional ownership, and ownership concentration. The population of this research is all manufacturing companies listed in Indonesia Stock Exchange (IDX). Samples were taken for the year 2014-2016 and was collected using the purposive sampling method. This research used secondary data from the annual reports of the companies. Moderated Regression Analysis on EViews 9 was used to examine the data. Findings of this study shows that corporate social responsibility has a positive influence on firm value. The regression analysis proved that earnings management does moderate the relationship between corporate social responsibility and firm value negatively.