Corporate social responsibility: opportunistic behavior under earnings management?

Jian, Jianhui; He, Ke; Liu, Yuan; Sun, Yulong

doi:10.1080/16081625.2023.2170891

Cited by 11 publications

(10 citation statements)

References 64 publications

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“…This indicates that the connection is moderated by many circumstances and influences. Jian et al [63] controlled their model on Chinese companies for family involvement and found similar results. In addition, their analysis shows that fund ownership and a higher ownership concentration also have a significant negative relationship, leading to a lower engagement in Earnings Management while showing a strong CSR performance.…”

Section: Moderating Factorsmentioning

confidence: 73%

“…Since the study is concepted as a cross-country analysis including USA, Asia and the EMEA states, the effect of country-specific effects on the results is already addressed within their research design. In contrast, Jian et al [63] found a significant negative correlation between executive compensation and CSR performance. Thus, it cannot be ruled out that managers use CSR as a mask for their Earnings Management activities.…”

Section: Moderating Factorsmentioning

confidence: 84%

“…Hwang [62] The use of non-GAAP reporting when managers' ability to manage accruals is constrained will differ between companies with good CSR performance and those with bad CSR performance Jian et al [63] H1: The higher the degree of earnings management, the higher the social responsibility score H2: Compared with companies with better CSR performance, earnings management of companies with poor performance has a more significant positive impact on CSR score. H3: The positive effect of earnings management of non-family companies on CSR score is more significant than that of the family business.…”

Section: Chen Andmentioning

confidence: 99%

“…In the case of analyses that used moderators, the results in which CSR performance or Earnings Management was controlled by the respective moderator were considered. Almahrog et al [9] x Amar and Chakroun [14] x Litt et al [58] x Bose and Yu [59] x Chen and Hung [60] x x Chen et al [43] x Dimitropoulos [44] x Garcia-Sanchez et al [41] x N/A Gerged et al [61] x Hwang [62] x Jian et al [63] x Jordaan et al [64] x x Kim et al [6] x x Liu et al [3] N/A N/A Lu and Steven [65] x Martinez-Martinez et al [66] x Mohammad et al [68] x Rahman and Zheng [69] x x Rezaee and Tuo [70] x Sial et al [13] x Velte [38] x N/A Velte [7] x x Wang and Kangtao [71] x Zhang et al [72] x x Source: own illustration. Explanation: N/A: no significant correlation has been recorded by the authors;…”

Section: Fitting the Frame Of Agency Theorymentioning

confidence: 99%

See 3 more Smart Citations

What Earnings Management Has to Do with Corporate Social Responsibility

Meyer,

Dutzi

2024

Sustainability

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With the continuing rise of attention towards societal challenges like, e.g., climate change, Corporate Social Responsibility (CSR) becomes an increasingly important topic for companies. While there is no question that CSR activities are on the rise, the connection towards Earnings Management in companies is less clear. Therefore, this research paper not only aims to provide an up-to-date picture on the literature addressing this interconnection, but also provides a profound base for a more solid theoretical framework. Thus, it delivers a critical basis for further empirical analyses in this field. In order to illustrate this interconnection between those two topics, this paper presents an SLR analysis of articles published in the Chartered Association of Business Schools (CABS) or Australian Business Deans Council (ABDC), focusing on empirical analyses of CSR performance and Earnings Management. Overall, it can be stated that CSR performance has a negative influence on Accrual-Based Earnings Management, while findings on the influence on Real Earnings Management are contradicting. Furthermore, the relationship of CSR performance and Accrual-Based Earnings Management/Real Earnings Management is especially vague when the used methods are moderated by different variables such as family involvement or managerial entrenchment. While the connection between Accrual-Based Earnings Management and CSR performance is widely covered in the existing literature, the relationship between Real Earnings Management and CSR performance is clearly less outlined. This research paper makes key contributions to the existing literature, as it combines and structures results of conducted studies during the last ten years and elaborates on the differences on commonalities of the results. This analysis also suggests that other factors that possibly influence Earnings Management or CSR should be included in a future research model for upcoming analyses. It places the findings of earlier studies into the context of the Ethical Approach, creating a roadmap for the future.

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Section: Moderating Factorsmentioning

confidence: 73%

Section: Moderating Factorsmentioning

confidence: 84%

Section: Chen Andmentioning

confidence: 99%

Section: Fitting the Frame Of Agency Theorymentioning

confidence: 99%

See 2 more Smart Citations

What Earnings Management Has to Do with Corporate Social Responsibility

Meyer,

Dutzi

2024

Sustainability

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“…The combination of good corporate governance practices and CSR disclosure allows companies to proactively manage these risks, reducing potential financial losses and reputational damage. Ultimately, this safeguards the company's assets and protects its long-term sustainability, leading to improved financial performance [54]. Based on the discussion on the key variables of this study, which include corporate governance, CSR, and financial performance of six OECD-listed companies, the following hypothesis has been developed: Hypothesis 2 (H2).…”

Section: Hypothesis 1 (H1)mentioning

confidence: 99%

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

Hamad

Çek

2023

Sustainability

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This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries’ stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries’ listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France’s code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.

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Does corporate governance influence readability of the report by the chairman of the board of directors? The case of Jordanian listed companies

Herenia,

Julián,

Al‐mohareb

2024

Corp Soc Responsibility Env

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This study investigates whether readability of the president's statement is linked to both company performance and factors related to corporate governance in an emerging market context. We analyse Jordanian manufacturing companies listed on the Amman Stock Exchange (ASE) during the period 2017–2021. An exploratory study using panel data from ASE, parametric correlations, and regression models shows the relationship between readability of the president's statement, corporate governance, and characteristics of the board of directors. The results indicate that corporate governance significantly moderates readability of the president's statement and the firm's performance. The results also show a relationship between readability of the chairman's statement and directors' accounting experience and confirm that independence of the board of directors and concentration of ownership affect readability of the accounting disclosures in the chairman's statement. Finally, poor board compliance significantly mitigates the association between board features and readability of the chairman's statement. These findings help to explain how and why firms adjust their information disclosure and transparency practices, affecting corporate reporting credibility and efficacy. This study is one of few to examine how board features affect readability of the president's statement within the Jordanian legal framework, which is plagued by poor board compliance due in part to constant amendments.

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Corporate social responsibility: opportunistic behavior under earnings management?

Cited by 11 publications

References 64 publications

What Earnings Management Has to Do with Corporate Social Responsibility

What Earnings Management Has to Do with Corporate Social Responsibility

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

Does corporate governance influence readability of the report by the chairman of the board of directors? The case of Jordanian listed companies

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