Corporate Governance and Earnings Management: The Role of CSR Disclosure in Manufacturing Companies on the Indonesia Stock Exchange (2021-2023)

Abstract

This study examines the relationship between Corporate Governance (CG), Earnings Management (EM), and the role of Corporate Social Responsibility (CSR) disclosure as a mediator in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2021-2023. Based on a literature review of related scientific articles, strong CG, such as board diversity and audit committees, is negatively correlated with EM, while CSR disclosure mediates this relationship by reducing the incentive for earnings manipulation. The findings show that manufacturing companies with good CG tend to have higher CSR disclosure, which in turn improves earnings quality. Practical implications include recommendations for IDX regulators to strengthen CSR disclosure standards to encourage corporate transparency and sustainability