The Influence of Corporate Governance System and Corporate Social Responsibility on Corporate Profit Management Kompas 100

Abstract

This study aims to provide benefits for understanding the impact of corporate governance (GCG) and corporate social responsibility (CSR) on profit management. This research focuses on companies or entities included in the Compass100 index. In this index, some companies have been examined, and the selected company has a satisfactory company performance, a good business stock condition, and a good company portfolio. It covers the theories of legitimacy and agency, where legitimacy theory focuses on the sustainable survival of the company's operations, focusing on the interests of nature and the environment in which the entity operates. Selection of sample data using purposive sampling by selecting annual and financial reports from 2018 to 2021. The total sample selected was 32 entities, then processed using Eviews 12 software. The results obtained from the research showed that corporate governance had no influence on profit management, and corporate social responsibility showed significant negative results on profit management.