The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index

The rapid development of the business world encourages business actors to carry out various strategies, including earnings management, to present good financial reports. Earnings management is a strategy to show positive financial information that contradicts actual conditions. On this basis, compa...

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Main Authors: Novi Eka Nadias, Rida Perwita Sari
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-06-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://e-journal.uac.ac.id/index.php/iijse/article/view/6896
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author Novi Eka Nadias
Rida Perwita Sari
author_facet Novi Eka Nadias
Rida Perwita Sari
author_sort Novi Eka Nadias
collection DOAJ
description The rapid development of the business world encourages business actors to carry out various strategies, including earnings management, to present good financial reports. Earnings management is a strategy to show positive financial information that contradicts actual conditions. On this basis, companies carry out earnings management to achieve the company's profit target in the future. This study is focused on proving the effect of environmental and social performance on earnings management with the population used, namely SRI-KEHATI Index companies listed on the IDX in 2020-2023. This research is a quantitative study with a sampling method, namely purposive sampling, so that a sample of 11 companies with 4 years of observation is obtained. The data used in this study are secondary data obtained through financial reports and company sustainability reports. Data analysis in this study used Partial Least Squares (PLS). The results showed that environmental performance has a significant effect on earnings management. Meanwhile, social performance does not affect earnings management.
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issn 2621-606X
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publishDate 2025-06-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
record_format Article
series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-9be1143cda054e51bce998fbb6935cc92025-08-20T03:29:22ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-06-018210.31538/iijse.v8i2.6896The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati IndexNovi Eka Nadias0Rida Perwita Sari1Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya, IndonesiaUniversitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya, Indonesia The rapid development of the business world encourages business actors to carry out various strategies, including earnings management, to present good financial reports. Earnings management is a strategy to show positive financial information that contradicts actual conditions. On this basis, companies carry out earnings management to achieve the company's profit target in the future. This study is focused on proving the effect of environmental and social performance on earnings management with the population used, namely SRI-KEHATI Index companies listed on the IDX in 2020-2023. This research is a quantitative study with a sampling method, namely purposive sampling, so that a sample of 11 companies with 4 years of observation is obtained. The data used in this study are secondary data obtained through financial reports and company sustainability reports. Data analysis in this study used Partial Least Squares (PLS). The results showed that environmental performance has a significant effect on earnings management. Meanwhile, social performance does not affect earnings management. https://e-journal.uac.ac.id/index.php/iijse/article/view/6896Environmental PerformanceSocial PerformanceESGEarnings Management
spellingShingle Novi Eka Nadias
Rida Perwita Sari
The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index
Indonesian Interdisciplinary Journal of Sharia Economics
Environmental Performance
Social Performance
ESG
Earnings Management
title The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index
title_full The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index
title_fullStr The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index
title_full_unstemmed The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index
title_short The Effect of Environmental and Social Performance on Earnings Management in the Sri-Kehati Index
title_sort effect of environmental and social performance on earnings management in the sri kehati index
topic Environmental Performance
Social Performance
ESG
Earnings Management
url https://e-journal.uac.ac.id/index.php/iijse/article/view/6896
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AT ridaperwitasari effectofenvironmentalandsocialperformanceonearningsmanagementinthesrikehatiindex