Moderating Effect of Earnings Management on the Relationship Between Corporate Social Responsibility Disclosure and Profitability of Banks in Indonesia

Jaja Suteja (), Ardi Gunardi () and Annisa Mirawati
Additional contact information
Annisa Mirawati: Faculty of Economics, Universitas Pasundan, Jalan Tamansari 6-8 Bandung, 40116, Indonesia.

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 4, 1360-1365

Abstract: This study aims to obtain empirical evidence of earnings management (EM) as a moderating variable between corporate social responsibility (CSR) and profitability. This research was conducted by taking a sample of banking companies listed in the Indonesia Stock Exchange in 2010-2014. Data were collected using purposive sampling. The statistical method used was moderated regression analysis. Findings proved that CSR disclosure positively and significantly influences a company's profitability. By contrast, eaarnings management had a negative and significant influence as the moderating variable on the relationship between CSR and a company's profitability. These results suggested that a high level of EM, which leads to an enhanced CSR program, corresponds to weak profitability of the banking companies

Keywords: Corporate Social Responsibility; Earnings Management; Profitability; Banking Sector; Indonesia (search for similar items in EconPapers)
JEL-codes: G2 M14 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/2779/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/2779/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2016-04-09

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().