International Journal of Current Science Research and Review ISSN: 2581-8341 Volume 05 Issue 05 May 2022 DOI: 10.47191/ijcsrr/V5-i5-41, Impact Factor: 5.995 IJCSRR @ 2022 www.ijcsrr.org 1722 * Corresponding Author: Fazli Syam BZ Volume 05 Issue 05 May 2022 Available at: ijcsrr.org Page No.-1722-1740 Earning Management of Corporate Social Responsibility Mediation and Corporate Governance on Financial Performance (An Empirical Study on Idx Mining Corporates 2016-2020) Qari Nur Islami 1 , Fazli Syam BZ 2 , Riha Dedi Priantana 3 1,2,3 Syiah Kuala University, Banda Aceh, Indonesia ABSTRACT: This study aims to examine and analyze corporate social responsibility and corporate governance on financial performance and, through earning management as a mediating variable. Financial performance is the dependent variable which is proxied by ROA and MVA. The independent variables in this study were corporate social responsibility as proxied by 91 GRI 4.0 indicators and corporate governance as proxied by independent commissioners and institutional ownership. Earning management as a mediating variable proxied by discretionary accruals. This study uses a sample of 35 mining companies listed on the Indonesia Stock Exchange from 2016 to 2020. The data used in this study is secondary data analyzed using a multiple linear regression analysis path models with the help of SPSS 25 software, and corporate governance has a positive and significant effect on financial performance. Meanwhile, earning management has a negative and significant effect on financial performance. Corporate social responsibility has a positive and significant effect on earning management, while corporate governance has a negative and significant effect on earning management. Earning management mediates full corporate social responsibility on financial performance, while the board of commissioners partially mediates on financial performance. KEYWORDS: Earning Management, Corporate Social Responsibility, Corporate Governance, Financial Performance 1. INTRODUCTION The corporate is considered successful in improving its financial performance if it can increase investor confidence to invest in the corporate (Ayu & Omika, 2019; Setyarini et al., 2021). Financial performance reflects the success the corporate has achieved in its operations (Matar & Eneizan, 2018). An increase in a corporation's financial performance can be seen in the corporate's high profitability (Bag & Omrane, 2020). Higher profitability will bring success to the corporate, which leads to higher stock prices and makes the corporate grow (Homaidi et al., 2019). This profitability growth reflects confidence to increase because of its ability to increase corporate profits. So that investor confidence can increase, making it easier for management to increase capital by attracting interest (Wahyu & Widiatmi, 2019). Earning management also plays a role in strengthening financial performance. This is because earning management is close to the level of profit earned (Wahyu & Widiatmi, 2019). Earning management is a step taken by management to increase or decrease corporate profits in financial statements (Mahrani & Soewarno, 2018). Earning management measures can reduce profit-related information presented in financial statements. The low level of information contained in the financial statements will have a negative impact on the corporate's financial performance (Abduh & Rusliati, 2018; Braune et al., 2019; Dao & Ngo, 2020; Maharjan, 2019; Mangkusuryo & Jati, 2017; Rahmawardani, 2020). The earning management phenomenon found in Indonesia in 2016 occurred in a mining sector corporate, PT Timah Tbk. PT Timah Tbk was suspected of providing false financial reports in 2015 to cover up the corporate's financial performance, which was weakening from year to year, and to make public lies in the media that the corporate's strategy and efficiency had led good performance. In fact, the corporate's revenue fell to a loss of Rp. 59 billion. PT. Timah Tbk recorded a debt increase of almost 100%, namely Rp. 2.3 billion compared to 2013, which only reached Rp. 263 billion. Because of the Directors of PT. Timah Tbk could not get out of the loss trap, so PT. Timah Tbk has given 80% of mining space to business partners with negative consequences for the future of PT. Timah Tbk specifically for 7,000 employees in State-Owned Enterprises (tambang.co.id, 2016). Corporate social responsibility is also a variable that is closely related to financial performance. Corporate social responsibility is an action based on the corporate's ethical considerations directed at improving the economy. The corporate tries to