CORPORATE SOCIAL RESPONSIBILITY AND EARNINGS MANAGEMENT: THE ROLE OF CORPORATE GOVERNANCE

Purpose: The purpose of this paper is to examine the role of corporate governance in the relationship of Corporate Social Responsibility (CSR) and firm size to earnings management of manufacturing firms in Indonesia. Methodology: The study draws on data from 66 firms listed in Indonesian Stock Exchange from 2014 to 2017, using a multiple regression model. The present study examines the influence of CSR on earnings management, and the impact of corporate governance on the relationship between CSR and firm size with earnings management. Main Findings: The finding showed that the effect of CSR on earnings management was significant and positive. The study also finds a statistically significant negative relationship between firm size and earnings management. The evidence also shows the role of corporate governance in the relationship of CSR and firm size to earnings management is significant and negative, it means that when the firm has good corporate governance, the firms that allocate CSR funds are relatively large, then it will tend not to practice earnings management, likewise large firms with good corporate governance will tend not to do earnings management. Research limitations/implications: The present study does not include all possible other variables that influence earnings management. Further research might increase the scope of research objects by extending the study period and need to pay attention to the firm's macro factors or economic risk factors outside of financial performance so as to provide a more comprehensive picture of the results of the study. Originality/value: The study focuses on the role of corporate governance issues such as the independence and activity of the boards and their influence on earnings management. The subject analyses the possible impact of CSR and firms size-related earnings management that has received much attention from academic research, which has largely focused on studying the publications of corporate governance in Indonesia context and can be contributes thoughts about the importance of corporate social responsibility activities that are reported as a basis for consideration incorporate policy-making to further enhance corporate awareness in the social environment, as well as the importance of corporate governance to minimize earnings management practices

Implementasi SAK Entitas Mikro Kecil dan Menengah di UMKM Kota Banjarmasin

This study aimed to analyze the effect of education level, the understanding of accounting, the understanding of information technology, as well as socialization and training on the implementation of EMKM Financial Accounting Standards (SAK) on MSMEs in Banjarmasin, with a population of 37,540 MSMEs. In order to determine the sample, the Slovin formula was used and obtained 100 heads of MSMEs as respondents. Using multiple regression analysis tools, the results of this study indicated that the understanding of accounting and understanding of information technology had a positive and significant impact on the implementation of EMKM Financial Accounting Standards (SAK). Meanwhile, education level and socialization and training had no significant influence on the implementation of EMKM Financial Accounting Standards (SAK)

Effect of corporate governance in relationship between corporate social responsibility and firm sizes with earnings management

This study aims to empirically examine the influence of corporate social responsibility and firm size on earnings management, as well as how corporate governance influences the relationship between corporate social responsibility and firm size with earning management. The concept of earning management in this study adopted a model developed by Beneish (1999). Beneish implementation of M-Score Model will be modified and adjusted for firms in Indonesia. Beneish M-Score Model is developed to differentiate between manipulator and non-manipulator firms, using financial report element based on 8 ratio index. Agency theory (Jensen dan Meckling, 1976) implies the existence of information asymmetry. Information asymmetry arises when managers are more aware of internal information compared to the stakeholders. Gargouri et al. (2010) shows a positive relationship between corporate social responsibility with earning management, caused by expensive environmental activities. The results of Chih et al. (2008) study shows that companies with a high commitment to corporate social responsibility tend to do earning management. Based on positive accounting theory (Watts dan Zimmerman, 1986), earning management occurs because of political cost motives. Political costs include all costs that must be borne by the company related to government regulations, one of which is the tax burden. Large companies in a tax avoidance effort tend to reduce their profits. Lee and Choi (2002) states that firm size has a negative effect on earning management. In the other hand Rahmani and Mir (2013) states that firm size has a positive effect on earning management. The population in this study is based on manufacturing companies listed on the Indonesia Stock Exchange for the period 2013-2017, using a purposive sampling method with a specified criteria. The analysis technique uses statistical descriptive and Moderated Regression Analysis (MRA)

Comparison of the Dominance of Internal and External Influences on the Return of Shares of Companies Listed in IDX30

This study aims to determine the comparison of external and internal influences on stock returns on the Indonesia Stock Exchange. The research method uses quantitative methods from secondary data of financial analysis on 16 companies from 30 companies on the IDX Index that have a high level of liquidity and have a large capitalization selected by the IDX (Indonesia Stock Exchange) with several selection criteria, the selection is carried out by the IDX regularly 2 times every year, namely in February and August. from 2014-2018 and data from Bank Indonesia on economic growth and inflation in the same year. The data analysis technique used multiple regression. The results show that the influence of external factors in the form of economic growth and inflation is more dominant than the company's internal factors in the form of DY (Dividend Yield), EPS (Earning Per Share), ROE (Return On Equity), PER (Price Earning Ratio) affect stock returns. Implementation for companies that go public needs to pay attention to the dynamics of environmental changes, especially the inflation rate which can cause investors to sell their shares, while this phenomenon is an opportunity for some investors to get a cheaper share price than many other investors have released

Analisis perbandingan kinerja keuangan maskapai penerbangan

Penelitian ini bertujuan untuk menganalisis perbandingan kinerja keuangan antara maskapai penerbangan Garuda Indonesia dengan Thai Airways dengan menggunakan rasio keuangan debt to equity ratio, net profit margin, return on equity, earning per share, dan price earning ratio. Penelitian ini menggunakan metode deskriptif komparatif dengan pendekatan kuantitatif dan data sekunder yang diperoleh dari laporan keuangan tahunan maskapai penerbangan Garuda Indonesia dan Thai Airways periode 2019-2021. Teknik analisis data yang digunakan dalam penelitian ini yaitu uji Independent Sample T-test dan uji Mann Whitney-U dengan bantuan program SPSS. Hasil penelitian menunjukkan bahwa tidak terdapat perbedaan debt to equity ratio, net profit margin, return on equity, earning per share, dan price earning ratio antara maskapai penerbangan Garuda Indonesia dengan Thai Airway

Profil koperasi pegawai negeri : studi kasus penerapan akuntansi perkoperasian pada koperasi pegawai negeri di kota Banjarmasin

The aim of the research is to recognize wether civil servant cooperation have complemented standard of accountancy in running their business. Standard of accountancy based on the PSAK no. 27 that discuss how to record, magistrate, and approval on the financial report component, such as equity, liability, revenue, debt and credit. The outcome of research indicated that 18 civil servant cooperations are not completely implemented standard of accountancy. There are one cooperation which make a financial report in completely. The reason are (1) the employment status that most of them have other responsibility and duty at other institutions; (2) They do not obtain training on standard of accountancy before. Its impact on financial report thta are not standardize, equitably and unrealisti

The Influence of Risk Preference and Financial Condition on Tax Compliance of Boarding House Tax in Banjarmasin

This study aims to examine the effect of risk preference and financial condition on tax compliance of boarding house owners. The variables of this study are tax compliance, risk preference and financial condition. This study used primary data obtained from the questionnaire. In addition, the respondents of this study were the taxpayers who owned a boarding house in Banjarmasin chosen by using purposive sampling. Furthermore, multiple regression analysis was employed to analyze the obtained data. The results of the study concluded that risk preference and financial condition had positive effect on tax compliance