THE EFFECT OF AUDIT QUALITY, CORPORATE GOVERNANCE AND CSR ON REAL EARNINGS MANAGEMENT: INDONESIAN EVIDENCE

Document Type : Original Article

Authors

• Mahmudi Mahmudi
• Arief Bahtiar
• Afvia Diyun Duhita

Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, Indonesia

10.22067/ijaaf.2024.87410.1452

Abstract

This study aims to investigate the effect of audit quality, corporate governance, and Corporate Social Responsibility (CSR) on real earnings management. In this study, corporate governance is proxied by audit committee size, independent commissioner proportion, managerial ownership, and institutional ownership. The population in this study is the manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2019-2021. The sampling method was carried out using a purposive sampling approach. This study obtained 236 observation data from 82 companies in Indonesia. The data was analyzed using regression analysis. The results of this study indicate that audit quality, managerial ownership and institutional ownership has a positive significant effect on real earnings management. While audit committee has a negative significant effect on real earnings management. However, the proportion of independent board of commissioner and Corporate Social Responsibility disclosure has no effect on real earnings management. The results of this research shed light regarding the role of corporate governance mechanism and CSR on real earnings management practices of the Indonesian public companies

Keywords

• Earnings Management
• Audit
• Governance

Main Subjects

• Accounting

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