Earnings management, corporate social responsibility and corporate governance in Indonesian banking industry
This paper describes the research which investigates the moderating effect of corporate governance (CG) on the relationship of earnings management (EM) practices and corporate social responsibility (CSR) disclosure in companies listed on the Indonesia Stock Exchange. EM used in this study is the different between discretionary realized security gain or loss and discretionary loan loss provition. Data is obtained by purposive sampling process with a total sample of 138 out of 46 banking sector companies. The results showed that EM had not effect on CSR and audit committee has a negative effect on CSR, but independent commissioner does not affect CSR if tested together with EM.
Abbadi, S. S., Hijazi, Q. F., & Al-Rahahleh, A. S. (2016). Corporate Governance Quality and Earnings Management: Evidence from Jordan. Australasian Accounting, Business and Finance Journal, 10(2), 54–75. https://doi.org/10.14453/aabfj.v10i2.4
Achyani, F. (2015). Pengaruh Praktik Corporate Governance Terhadap Nilai Perusahaan Manajemen Laba Sebagai Variabel Intervening, 172–187.
Barnea, A., & Rubin, A. (2010). Corporate Social Responsibility as a Conflict Between Shareholders. Journal of Business Ethics, 97(1), 71–86.
Beatty, A. L., Keand, B., & Petroni, K. R. (2002). Earnings management to avoid earnings declines across publicly and privately held banks. The AccountingReview, 77(3), 547–570.
Chen, J. C., Patten, D. M., & Roberts, R. W. (2008). Corporate Charitable Contributions : A Corporate Social Performance or Legitimacy Strategy ? Journal of Business Ethics, 82(1), 131–144.
Chih, H. L., Shen, C. H., & Kang, F. C. (2008). Corporate social responsibility, investor protection, and earnings management: Some international evidence. Journal of Business Ethics, 79(1/2), 179–198.
Cornett, M. M., McNutt, J. J., & Tehranian, H. (2009). Corporate governance and earnings management at large U . S . bank holding companies. Journal of Corporate Finance, 15(4), 412–430.
Darwis, H. (2012). Manajemen Laba Terhadap Nilai Perusahaan Dengan Corporate Governance Sebagai Pemoderasi. Jurnal Keuangan Dan Perbankan, 16(1), 45–55.
Djuitaningsih, Tita & Marsyah, Wahdatul A. (2012). Pengaruh Manajemen Laba dan Mekanisme Corporate Governance Terhadap Corporate Social Responsibility Disclosure. Media Riset Akuntansi, Vol. 2 No. 2, 187-211.
Ebrahim, A. (2007). Earning management and board activity: an additional evidence. Review of Accounting and Finance, 6(1), 42–58.
Furfine, C. H. (2001). Banks as Monitors of Other Banks : Evidence from the Overnight Federal Funds Market. Journal of Business, 74(1), 33–57.
Greenawalt, M. B., & Sinkey, J. F. (1988). Bank Loan-Loss Provisions and the Income-Smoothing Hypothesis : An Empirical Analysis , 1976-1984. Journal of Financial Services Research, 1(4), 301–318.
Grougiou, V., Leventis, S., & Dedoulis, E. (2014). Corporate social responsibility and earnings management in U.S banks. Accounting Forum, 15.
Gujarati, D. N. (2005). Basic econometrics. 5th Ed. New York: McGraw-Hill.
Herawaty, V. (2008). Peran Praktek Corporate Governance Sebagai Moderating Variable dari Pengaruh Earnings Management Terhadap Nilai Perusahaan. Jurnal Akuntansi Dan Keuangan, 10(2), 97–108.
Hong, Y., & Andersen, M. L. (2011). The Relationship Between Corporate Social Responsibility and Earnings Management : An Exploratory Study. Journal of Business Ethics, 104(4), 461–471.
Jamail, D., A.M. Safieddine dan M Rabbath. 2008. Corporate Governance and Corporate Social Responsibility Sinergesis and Interrelationship. Corporate Governance: An International Review Volume. 16 (5): 443-459.
Jensen, C., & Meckling, H. (1976). Theory of the firm: managerial behavior, agency cost and ownership structure. Journal of Financial Economics, 3, 305–360.
Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The Accounting Review, 87(3), 761–796.
Klein, A. (2002). Audit committee , board of director characteristics , and earnings management. Journal of Accounting and Economics, 33, 375–400.
Leventis, S., Dimitropoulos, P. E., & Anandarajan, A. (2011). Loan Loss Provisions , Earnings Management and Capital Management under IFRS : The Case of EU Commercial Banks. Journal of Financial Service Research, 40(1–2), 103–122.
Levine, R. (2004). The Corporate Governance of Banks : A Concise Discussion of Concepts and Evidence, (9).
Lewis, M. K. (2009). The origins of the sub-prime crisis : Inappropriate policies , regulations , or both ? Accounting Forum, 33(2), 114–126.
Morgan, D. P. (2002). Rating Banks : Risk and Uncertainty in an Opaque Industry, 92(4), 874–888.
Oktavia, Yufenti (2013). Pengaruh Manajemen Laba Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan Dengan Corporate Governance Sebagai Variabel Moderasi. Jurnal Ilmiah Akuntansi dan Humanika JINAH, Vol. 2 No. 2, 676-704.
Prior, D., Surroca, J., & Tribó, J. A. (2008). Are Socially Responsible Managers Ethical ? Exploring the Relationship Between Earnings Management and Corporate Social Responsibility. Corporate Governance: An International Review, 16(3), 160–177.
Reverte, C. (2009). Determinants of Corporate Social Responsibility Disclosure Ratings by Spanish Listed Firms. Journal of Business Ethics, 88(2), 351–366.
Rice. (2016). Pengaruh Faktor Keuangan Terhadap Manajemen Laba Dengan Corporate Governance Sebagai Variabel Moderating. Jurnal Wira Ekonomi Mikroskil, 6(April), 55–72.
Riwayati, H. E., Markonah, & Siladjaja, M. (2016). Implementation of Corporate Governance Influence to Earnings Management. Procedia - Social and Behavioral Sciences, 219, 632–638.
Rodgers, R. F dan L. Mahoney. 2004. Stakeholder conception of the corporation: their meaning and influence in accounting research, Business Ethics Quarterly 14 (3): 391-431.
Scholtens, B. (2009). Corporate Social Responsibility in the International Banking Industry. Journal of Business Ethics, 159–175.
Scholtens, B., & Kang, F. (2012). Corporate Social Responsibility and Earnings Management: Evidence from Asian Economies. Corporate Social Responsibility and Enviromental Management.
Sun, N., Salama, A., Hussainey, K., & Habbash, M. (2010). Corporate environmental disclosure, corporate governance and earnings management. Managerial Auditing Journal, 25(7), 679–700.
Supardi, Supardi & Asmara, Eka Noor (2019). Financial Factors, Corporate Governance and Earnings Management: Evidence from Indonesian manufacturing industry. Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018).
Xie, B., Davidson, W. N., & Dadalt, P. J. (2003). Earnings management and corporate governance : the role of the board and the audit committee. Journal of Corporate Finance, 9, 295–316.
Zahra, S. A., Priem, R. L., & Rasheed, A. A. (2005). The Antecedents and Consequences of Top Management Fraud. Journal of Management, 31(6), 612–626.
Posting Your Article Policy
Understand IMANENSI's article sharing and posting policies for each stage of the article life cycle.
Prior to submission to IMANENSI
Authors may post their article anywhere at any time, including on preprint servers such as arXiv.org. This does not count as a prior publication.
Upon submission to IMANENSI
Authors may share or post their submitted version of the article (also known as the preprint) in the following ways:
- On the author’s personal website or their employer’s website
- On institutional or funder websites if required
- In the author’s own classroom use
- On Scholarly Collaboration Networks (SCNs) that are signatories to the International Association of Scientific, Technical, and Medical Publishers’ Sharing Principles (https://www.stm-assoc.org/stm-consultations/scn-consultation-2015/)
The following text should be included on the first page of the submitted article when it first is posted in any of the above outlets: “This work has been submitted to the IMANENSI: Jurnal Ekonomi, Manajemen, dan Akuntansi Islam, http://http://jurnal.fordebi.or.id/index.php/home/index".
Upon acceptance to IMANENSI
If an author previously posted their submitted version of the article in any of the following locations, he or she will need to replace the submitted version with the accepted version of IMANENSI. No other changes may be made to the accepted article.
- Author’s personal website
- Author’s employer’s website
- Funder’s repository*
Final published article
- When the article is published, the posted version should be updated with a full citation to the original of Jurnal IMANENSI: Ekonomi, Manajemen, dan Akuntansi Islam, including DOI. He or she will need to replace the accepted version with the published article version of IMANENSI.
- The article will be followed statements on the IMANENSI's copyright notice at http://jurnal.fordebi.or.id/index.php/home/addmenu