PENGARUH CORPORATE SOCIAL RESPONSIBILITY TERHADAP KINERJA KEUANGAN DENGAN MANAJEMEN LABA SEBAGAI VARIABEL MODERATING

Abstract

This research aimed to examine empirically and analyze the effect of corporate social responsibility on the financial perfomance, with earnings management as moderating variable, of manufacturing companies which were listed on Indonesia Stock Exchange. While, the population was manufacturing companies which were listed on Indonesia Stock Exchange during the 4-years period (2014-2017). Moreover, the data collection technique used purposive sampling. In line with, there were 26 companies, as sample, with 104 observations. Furthermore, the data analysis techniques used Moderated Regression Analysis (MRA). The research result, based on hypothesis testing, concluded as follow: (1) Corporate Social Responsibility (CSR) had positive and significant effect on the financial performance. It meant, the greater the level of asset recovery, the higher the disclosure of corporate social responsibility (CSR); (2) the earnings management could not moderate the effect of corporate social responsibility (CSR) on the financial performance. In other words, as the disclosure of CSR was considered as mandatory, the manufacturing companies had to disclose its CSR. Therefore, the earnings management was not as entrenchment strategy of its managers in order to improve corporate finance’s performance.
Keywords: corporate social responsibility, financial performance, profit management.