Pengaruh Pergantian CEO dan Pengungkapan CSR sebagai Maslahat Mursalah terhadap Manajemen Laba dengan Struktur Corporate Governance sebagai Variabel Moderasi

Abstract

This study aims to determine whether CEO turnover and CSR disclosure as maslahat mursalah are moderated by corporate governance structure consisting of independent commissioners, audit committee and institutional ownership partially affect earnings management. This study uses secondary data from manufacturing companies during 2019. Sampling technique using purposive sampling. The data were collected and analyzed using moderated regression analysis (MRA). The result indicate that CEO turnover and CSR disclosure as maslahat mursalah have no effect on earnings management. Independent commissioners and institutional ownership does not moderate the effect of CEO turnover on earnings management. The audit committee weakens the positive influence of CEO turnover on earnings management. The audit committee and institutional ownership do not moderate the effect of CSR disclosure as masalaht mursalah on earnings management. This study has limitations on audit committee measurement indicators that are less able to reflect the actual performance of audit committees, so that future research is expected to use more appropriate indicators.

Analysis of the Effect of CEO Change and Financial Distress on Earnings Management in Insurance Companies Listed on the IDX for the 2013-2022 Period

“…Effendi et al (2019) [4] And Gurusinga et al (2023) [5] also stated that there was a positive influence between CEO change on earnings management, but it was not significant because CEO change gave a signal that there would be changes in company management by establishing new policies or regulations to improve company performance so that earnings management practices could be minimized. However, this is different from the research conducted by Prawestri et al (2022) [6] found that CEO turnover does not affect earnings management. This is because changing CEOs in a company is a natural thing to happen for various reasons, such as the end of their term of office, entering retirement, or passing away while in office.…”

“…New CEOs tend to use the practice of taking a bath to demonstrate better performance and gain investor support. However, research by Prawestri et al, (2022) [6] shows that a change in CEO has no effect on earnings management practices in the company. CEO changes are not always motivated by negative things, but can also be caused by various non-economic reasons such as death, end of term of office, or retirement.…”