Peran Mekanisme Corporate Governance dan CSR dalam Meminimalisir Praktik Earning Management melalui Konservatisme Akuntansi

Abstrak

The purpose of this study is to examine how corporate governance practices and social activities are implemented in Indonesian companies to reduce profits management strategies by reinforcing conservative policies. To meet the study's objectives, an explanatory research design with a quantitative method is used. The data used were 19 companies, with an observation period ranging from 2014 to 2019, for a total of 114 observations. To evaluate and explain the influence of each construct and latent variable, data is analyzed using Partial Least Squares and WarpPLS software. The study's findings demonstrated that corporate governance and CSR procedures had no substantial impact on financial reporting methods, indicating that the corporation is ineffectual in avoiding earnings management tactics. Meanwhile, the adoption of a conservative accounting system demonstrates that governance and CSR have a major impact, implying that these two processes are important variables in the implementation of a conservative accounting system. This study is expected to make recommendations for reducing financial report manipulation by improving CG, CSR, and AC practices in Indonesian enterprises. Furthermore, this study has the potential to shed new light on empirical findings that contradict past research.