The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence

This study investigates the effect of audit quality, corporate governance, and Corporate Social Responsibility (CSR) on real earnings management. This study proxies corporate governance by audit committee size, independent commissioner proportion, managerial ownership, and institutional ownership. T...

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Main Authors: Mahmudi Mahmudi, Arief Bahtiar, Afvia Duhita
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2024-12-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_45131_6dbf07d8f9242e99f50982e48d266363.pdf
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author Mahmudi Mahmudi
Arief Bahtiar
Afvia Duhita
author_facet Mahmudi Mahmudi
Arief Bahtiar
Afvia Duhita
author_sort Mahmudi Mahmudi
collection DOAJ
description This study investigates the effect of audit quality, corporate governance, and Corporate Social Responsibility (CSR) on real earnings management. This study proxies corporate governance 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) from 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 positively affect real earnings management. At the same time, the audit committee has a negative significant effect on real earnings management. However, the proportion of independent boards of commissioners and Corporate Social Responsibility disclosure does not affect real earnings management. This research shed light on the role of corporate governance mechanisms and CSR in real earnings management practices of Indonesian public companies.
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spelling doaj-art-94e39ce12e8a4b48bf03b074bc01a9282025-08-20T02:35:12ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422024-12-018412513810.22067/ijaaf.2024.45131.145245131The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian EvidenceMahmudi Mahmudi0Arief Bahtiar1Afvia Duhita2Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, IndonesiaAccounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, IndonesiaAccounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, IndonesiaThis study investigates the effect of audit quality, corporate governance, and Corporate Social Responsibility (CSR) on real earnings management. This study proxies corporate governance 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) from 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 positively affect real earnings management. At the same time, the audit committee has a negative significant effect on real earnings management. However, the proportion of independent boards of commissioners and Corporate Social Responsibility disclosure does not affect real earnings management. This research shed light on the role of corporate governance mechanisms and CSR in real earnings management practices of Indonesian public companies.https://ijaaf.um.ac.ir/article_45131_6dbf07d8f9242e99f50982e48d266363.pdfearnings managementauditgovernance
spellingShingle Mahmudi Mahmudi
Arief Bahtiar
Afvia Duhita
The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence
Iranian Journal of Accounting, Auditing & Finance
earnings management
audit
governance
title The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence
title_full The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence
title_fullStr The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence
title_full_unstemmed The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence
title_short The Effect of Audit Quality, Corporate Governance and CSR on Real Earning Management: Indonesian Evidence
title_sort effect of audit quality corporate governance and csr on real earning management indonesian evidence
topic earnings management
audit
governance
url https://ijaaf.um.ac.ir/article_45131_6dbf07d8f9242e99f50982e48d266363.pdf
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