Abstract

Purpose – The aim of the research is to investigate the associations of earnings management (DA), corporate environmental disclosure (CED), corporate financial performance (CFP), and corporate governance mechanism (CG).

Design/methodology/approach – Partial Least Squares-Structural Equation Modelling (SEM).

Findings – DA has a positive and significant effect on CED, DA has a positive and significant effect on CFP, CED has a positive and significant effect on CFP, DEC has a partially mediated the effect of DA on CFP, and the effect of DA on CFP becomes less at the higher CG.

Suggestion for future research - It is expected to use control variables in order to clarify the effect of latent variables in the study. Besides, it is suggested to use other measurements in measuring CED. Using other proxies in the measurement of CFP, such as Tobin's Q or others is the other suggestions.