Peran Pengungkapan Corporate Social Responsibility dalam Memediasi Hubungan Koneksi Politik dengan Kemungkinan Kecurangan Laporan Keuangan
Abstract
The purpose of the study was to examine the relationship between political affiliation and the potential for misleading financial statements, as well as the function of corporate social responsibility disclosure in reducing its effect on public companies that issue sustainability reports in 2019 and 2020. Sampling used purposive sampling to obtain data from 138 companies. publicly traded on the Indonesia Stock Exchange. In conducting the analysis used path analysis. The results show that financial statement fraud is negatively affected by political connections according to the regression test that has been carried out. This study also shows that CSR disclosure can mediate the relationship of political connections with fraudulent financial reporting.
Keywords: CSR Disclosure; Financial Statement Fraud; Political Connections.
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References
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Li, X., Bon, J., Haibin, K., & Yangxin, W. (2019). Corporate Social Responsibility and Financial Fraud : The Moderating Effects of Governance and Religiosity. Journal of Business Ethics, 0123456789. https://doi.org/10.1007/s10551-019-04378-3
Santoso, N. T., & Surenggono. (2018). Predicting Financial Statement Fraud with Fraud Diamond Model of Manufacturing Companies Listed in Indonesia. State-of-the-Art Theories and Empirical Evidence, May. https://doi.org/10.1007/978-981-10-6926-0
Wang, Z., Chen, M., Lung, C., & Zheng, Q. (2017). Managerial ability, political connections, and fraudulent financial reporting in China. Journal of Accounting and Public Policy, 36(2), 141–162. https://doi.org/10.1016/j.jaccpubpol.2017.02.004
Wang, Z., Reimsbach, D., & Braam, G. (2018). Political embeddedness and the diffusion of corporate social responsibility practices in China: A trade-off between financial and CSR performance? Journal of Cleaner Production, 198, 1185–1197. https://doi.org/10.1016/j.jclepro.2018.07.116
Wang, Z., Reimsbacha, D., & Braam, G. (2018). Political embeddedness and the diffusion of corporate social responsibility practices in China: A trade-off between financial and CSR performance? Journal of Cleaner Production, 198, 1185–1197.
Beneish, M. (1997). Detecting GAAP Violation: Implications for Assesing Earnings Management Among Firms With Extreme Financial Performance. Journal of Accounting and Public Policy, 271–309.
Bianchi, M. T., Monteiro, P., Azevedo, G., Oliveira, J., Viana, R. C., & Branco, M. C. (2019). Political connections and corporate social responsibility reporting in Portugal. Journal of Financial Crime, 26(4), 1203–1215. https://doi.org/10.1108/JFC-10-2018-0111
Chaney, P. K., Faccio, M., & Parsley, D. (2011). The quality of accounting information in politically connected firms. Journal of Accounting and Economics, 51(1–2), 58–76. https://doi.org/10.1016/j.jacceco.2010.07.003
Cheng, Z., Wang, F., Keung, C., & Bai, Y. (2017). Will Corporate Political Connection Influence the Environmental Information Disclosure Level? Journal of Business Ethics, 143(1), 2019–2221. https://doi.org/10.1007/s10551-015-2776-0
Faccio, M. (2006). Politically Connected Firms. 96(1)(1999), 369–386.
Fisman, R. (2001). Estimating the Value of Political Connections. American Economic Review, 91(4), 1095–1102.
Gross, C., Königsgruber, R., Pantzalis, C., & Perotti, P. (2016). The financial reporting consequences of proximity to political power. Journal of Accounting and Public Policy, 35(6), 609–634. https://doi.org/10.1016/j.jaccpubpol.2016.06.007
Guedhami, O., A, J., Pittman, & Saffar, W. (2014). Auditor Choice in Politically Connected Firms. Journal of Accounting Research, 52(1), 107–162. https://doi.org/10.1111/1475-679X.12032
Guedhami, Pittman, & Saffar. (2014). Auditor Choice in Politically Connected Firms. Journal of Accounting Research, 52(1), 107–162. https://doi.org/10.2139/ssrn.1681459
Harrison, J. S., & Wicks, A. C. (2013). Stakeholder Theory, Value, and Firm Performance. Business Ethics Quarterly, 23(1), 97–124. https://doi.org/10.5840/beq20132314
Harymawan, I., & Nowland, J. E. (2016). Political connections and earnings quality : How do connected firms respond to changes in political stability and government effectiveness ? International Journal of Accounting & Information Management, 24(4), 339–356.
Li, X., Bon, J., Haibin, K., & Yangxin, W. (2019). Corporate Social Responsibility and Financial Fraud : The Moderating Effects of Governance and Religiosity. Journal of Business Ethics, 0123456789. https://doi.org/10.1007/s10551-019-04378-3
Santoso, N. T., & Surenggono. (2018). Predicting Financial Statement Fraud with Fraud Diamond Model of Manufacturing Companies Listed in Indonesia. State-of-the-Art Theories and Empirical Evidence, May. https://doi.org/10.1007/978-981-10-6926-0
Wang, Z., Chen, M., Lung, C., & Zheng, Q. (2017). Managerial ability, political connections, and fraudulent financial reporting in China. Journal of Accounting and Public Policy, 36(2), 141–162. https://doi.org/10.1016/j.jaccpubpol.2017.02.004
Wang, Z., Reimsbach, D., & Braam, G. (2018). Political embeddedness and the diffusion of corporate social responsibility practices in China: A trade-off between financial and CSR performance? Journal of Cleaner Production, 198, 1185–1197. https://doi.org/10.1016/j.jclepro.2018.07.116
Wang, Z., Reimsbacha, D., & Braam, G. (2018). Political embeddedness and the diffusion of corporate social responsibility practices in China: A trade-off between financial and CSR performance? Journal of Cleaner Production, 198, 1185–1197.
Published
2022-06-26
How to Cite
HADY, Anindya Ratna Kartika; CHARIRI, Anis.
Peran Pengungkapan Corporate Social Responsibility dalam Memediasi Hubungan Koneksi Politik dengan Kemungkinan Kecurangan Laporan Keuangan.
E-Jurnal Akuntansi, [S.l.], v. 32, n. 6, p. 1632-1646, june 2022.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/86156>. Date accessed: 21 nov. 2024.
doi: https://doi.org/10.24843/EJA.2022.v32.i06.p18.
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