ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND EARNINGS MANAGEMENT: THE ROLE OF AUDIT QUALITY

Authors

  • Mhd. Yazid Al Amin Universitas Sebelas Maret, Indonesia
  • Edy Supriyono Universitas Sebelas Maret, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v10i3.20741

Abstract

Grounded in Agency and Stakeholder theories, this research explores the influence of Environmental, Social, and Governance (ESG) performance on earnings management, while also assessing whether audit quality serves as a moderating factor. The magnitude of earnings manipulation is evaluated using discretionary accruals. By applying a purposive sampling technique, the study analyzes 238 firm-year observations from non-financial corporations registered on the Indonesia Stock Exchange between 2020 and 2024. The data is processed utilizing Moderated Regression Analysis (MRA). The empirical outcomes reveal that organizations demonstrating superior ESG achievements are less likely to engage in earnings management. Conversely, audit quality, measured by the presence of a Big Four auditor, fails to show a significant moderating effect in reinforcing the linkage between ESG practices and reduced earnings manipulation.
Keywords : Earnings Management, ESG, Audit Quality.

Downloads

Published

2026-09-26

How to Cite

Al Amin, M. Y., & Edy Supriyono. (2026). ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND EARNINGS MANAGEMENT: THE ROLE OF AUDIT QUALITY. International Journal of Economics, Business and Accounting Research (IJEBAR), 10(3). https://doi.org/10.29040/ijebar.v10i3.20741

Issue

Vol. 10 No. 3 (2026): IJEBAR: Vol. 10, Issue 3, September 2026

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in IJEBAR. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).