Good Corporate Governance to Financial Performance: Earnings Management Moderation

Abstract

The aim of this study is to examine the impact of Good Corporate Governance (GCG) on financial performance and analyze whether earnings management affects the financial performance of mining companies listed on the Indonesia Stock Exchange (BEI) during the period 2018-2022. The research adopts a quantitative approach using Structural Equation Modeling (SEM) based on Partial Least Square (PLS). The population and sample consist of 47 mining companies listed on BEI from 2018 to 2022. The results indicate that GCG has a significant and positive influence on financial performance, while earnings management does not significantly affect financial performance. Furthermore, earnings management moderates the impact of GCG on financial performance.