The Corporate Social Responsibility Disclosure Reflect Ethical and Provides A Signal in the Form of Good News
DOI:
https://doi.org/10.26740/jaj.v15n2.p137-150Keywords:
CSR Disclosure, Earnings Management, Investors' ResponseAbstract
ntroduction/Main Objectives: The study's novelty examines the effect of CSR disclosure on two
factors that appear within the company: internal factors in the form of earnings management by
company management and external factors in the form of investors’ responses by investors outside
the company. Background Problems: This study aims to test empirical evidence about the effect of
CSR disclosure on earnings management and investors’ response to the non-financial sector of
companies in Indonesia. Research Methods: The research data is sourced from 720 sustainability
reports and annual report data of non-financial companies listed on the IDX during 2018-2021
with a purposive sampling method. Finding/Results: The results showed that CSR disclosure hurts
earnings management and positively affects investors’ responses. Conclusion: This study indicate
that CSR disclosure reflects ethical behaviour so that financial reports are more transparent and
earnings management practices will decrease, while CSR disclosure provides a signal in the form
of good news that could attract investors to buy company shares.
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Copyright (c) 2024 Muhammad Zaki Adriansyah Zaman, Edy Supriyono, Nurmadi Harsa Sumarta, Corina Joseph
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