The Influence of Sustainability Report Disclosure and Implementation of Good Corporate Governance on Earning Response Coefficient

Abstract

This study aims to analyze the influence of disclosure of Corporate Social Responsibility and Good Corporate Governance to Earning Response Coefficient. The sampling technique used is purposive sampling. The research was conducted on the Mining Sector Company with the research period 2014-2016. The estimation of the research model used is multiple regression analysis. The results of this study are by the initial assumption that there is a positive correlation of the influence of CSR disclosure in a sustainability report to the informativeness of earnings (ERC), where the higher disclosure of CSR information indicates better corporate management signals, this ERC will also be higherGood Corporate Governance also has a positive effect on earnings quality calculated by ERC. The better the level of Good Corporate Governance owned by a company will weaken the action of the agent in making profit manipulation that is harmful so that the quality of earnings can increase.

Keywords: Corporate Social Responsibility, Good Corporate Governance, and Earning Response Coefficient

DOI: 10.7176/EJBM/11-34-05

Publication date: December 31^st 2019