Earning management, corporate social responsibility disclosures and firm’s value: Empirical study on manufacturing listed on IDX period 2010-2012

Abstract

To achieve maximum value is the main goal of any company in order to maintain their sustainability. Management and corporate social responsibility are undertaken to achieve this goal. This research was aimed at indetifying the influence of the earning management on the firm’s value by looking into corporate social responsibility as an intervening variable. Population in this research was maanufacturing company listed in Indonesia Stock Exchange period 2010 to 2012, which also includes corporate social responsibility disclosure. The sample consisted of 38 companies which were selected by purposive random sampling. Data were analyzed by descriptive and qualitative statistical. The result showed that earning management has a positive but insignificant influence on corporate social responsibility disclosure, corporate social responsibility disclosure has a positive and significant influence on firm’s value, and earning management has a negative and insignificant influence on firm’s value. Using 38 companies sample and 3 years of timing length was the limitation of this research.

Keywords: Earning management, corporate social responsibility disclosure, firm’s value.