Effect of Corporate Governance And Disclosure of Corporate Social Responsibility on The Quality of Financial Statements

The aim of this study was to analyze the effect of the disclosure of corporate social responsibility on the quality of the financial reports and the disclosure of corporate social responsibility mediation on the financial report quality of corporate governance. The dependent variable, financial report quality, was measured by earnings management (RAM); while, the independent variables, corporate social responsibility disclosure and corporate governance, were measured byCSRindex andCGIindex. Meanwhile, the control variables were the negative value of operating cash flow, profit, debt ratio, market volatility, and operating cycle. The sample was manufacturing companies listed in Indonesia Stock Exchange in the period of 2013-2015. The sampling method was purposive sampling and the technique of analysis was multiple linear regression. The results showed that corporate social responsibility disclosure significantly and negatively affectedRAMand the mediation of corporate social responsibility disclosure on the effect of corporate governance did not affect the quality of the financial reports

PENGARUH CORPORATE GOVERNANCE DAN PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP KUALITAS LAPORAN KEUANGAN (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2013-2015)

The purposes of this research is to analyze the effect of corporate social responsibility disclosure on financial reports quality and the corporate social responsibility disclosure mediation on corporate governance of financial reports quality. Financial reports quality as dependen variable is measured by earnings management (RAM). Corporate social responsibility disclosure and corporate governance as an independen variable are measured by CSR index and CGI index. This research uses negative value of operating cash flow, profit, debt ratio, market volatility, and operating cycle as a control variable. The sample of this research is manufacturing companies listed in Indonesia Stock Exchange during the period 2013-2015. The sampling method in this research is purposive sampling. The analysis technique in this study using multiple linear regression analysis. Overall, the results show that corporate social responsibility disclosure has significant negative effects on the RAM. There is no corporate social responsibility disclosure mediation on the effect of corporate governance on financial reports quality