PENGARUH CORPORATE SOCIAL RESPONSIBILITY (CSR) TERHADAP KUALITAS LABA DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERATING

Abstract

This research is motivated by the growing environmental issues. Guidelines for good corporate
governance requires companies to create checks and balances, enforcing transparency and
accountability, as well as promoting corporate social responsibility for the survival of the
company (KNKG, 2006). Disclosure of corporate social responsibility has a short-term goal
is to minimize earnings management, while long-term goal is to build a good relationship with
stakeholders. Research relating to the relationship between corporate social responsibility
with diverse earnings quality. Research related to the relationship between corporate social
responsibility with earnings quality is diverse, therefore, this study adds corporate governance as
a moderating variable. This study aims to provide empirical evidence regarding the relationship
between corporate social responsibility and quality of earnings with corporate governance as a
moderating variable. This study uses independent directors and audit committee as a proxy for
corporate governance mechanism, while earnings management or a proxy of earnings quality.
The analysis technique used in the study is to use Moderating Regression Analysis (MRA) and
residual test. This study uses secondary data such as financial statements and annual report nonfinancial
companies listed on the Indonesia Stock Exchange for the period 2010-2012. The results
showed that the hypothesis of one and two hypothesis is accepted while the third hypothesis is
not accepted.