Disclosure of Social Responsibility and Earnings Management with Management Credibility as a Moderating Variable

Eko Budi Santoso (Faculty of Economics and Business, Airlangga University, Indonesia)
Basuki (Faculty of Economics and Business, Airlangga University, Indonesia)
Isnalita (Faculty of Economics and Business, Airlangga University, Indonesia)

E-Jurnal Akuntansi
Vol. 33 No. 4 (2023)

This study aims to examine the effect of standardized disclosure of social responsibility, management creditability on earnings management. The research sample is a company going public in the non-financial sector on the Indonesia Stock Exchange that has disclosed GRI-based social responsibility for the 2013-2019 period. The analysis technique used in this study is moderated regression analysis (MRA). The results of the study found that disclosure of social responsibility has a negative effect on earnings management and management credibility strengthens this relationship. The results of the study indicate that companies that put more effort into disclosing their social responsibility through standardized disclosures will reduce earnings management practices and this is reinforced by the existence of a credible management team. The research results contribute to the development of a model of the relationship between corporate disclosures.