Literature Review on the Association between Earnings Management and Corporate Social Responsibility

Parvin, Ruksana; Rana, Md. Sohel; Shams, Shahpar

doi:10.46281/ijafr.v5i1.489

Cited by 10 publications

(10 citation statements)

References 23 publications

(29 reference statements)

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“…Thus, our results show the publication of articles in this field by a large number of authors in more than 50 countries around the world. However, our analysis of geographical dispersion coincides with the previous study by Parvin et al (2020), as it indicates that the most prolific current research is concentrated in a number of countries, such as China and the US, followed by the UK and Spain. In addition, this bibliometric review differs from others published to date, analyzing the productivity of organizations.…”

Section: Discussionsupporting

confidence: 89%

“…However, our study differs from previous studies by Velte (2020) and Parvin et al (2020), indicating that, in 2015, there was a growing interest in the study of CSR's influence on EM. It has thus been confirmed that there has been a recent and successful period of related academic literature, specifically from 2015 to date.…”

Section: Discussioncontrasting

confidence: 85%

“…This research presents a structured review of the literature studying the influence CSR on EM. Bibliometric studies on EM and the impact of CSR on EM are found in pre ous literature (Velte 2020;Parvin et al 2020;Benlemlih 2017). However, a bibliome review linking CSR and EM that analytically and objectively identifies emerging wor authors and research groups has not been completed previously.…”

Section: Discussionmentioning

confidence: 99%

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The Effect of Corporate Social Responsibility on Earnings Management: Bibliometric Review

Jaén

León-Gómez

Madrid

2021

IJFS

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This review aims to study the knowledge development and research dissemination on the influence of Corporate Social Responsibility (CSR) on earnings management through a social network approach using a bibliometric review. A systematic bibliometric review was carried out on 329 papers obtained from the Clarivate Analytics Web of Science (WoS) Core Collection database. The data were analyzed by year, journal, author, institution, country, affiliation, subject area and term analysis. The results reveal the growing interest of researchers in studying the impact of CSR. Although the USA and China dominate publication production, there are a large number of authors from more than 50 countries around the world. The results also show that being prolific does not imply being influential in this area. The keyword patterns showed some interesting potential areas of study on this topic. The findings of this paper provide insight to the research on the analysis of the influence of CSR on earnings management. The most important findings consist of a number of gaps in the literature, such as gender diversity, voluntary disclosure of information and existence of an audit committee, among others, that allow for future fields of research to improve the analysis of the influence of CSR in EM. This research should also prove helpful to managers, owners and auditors. This is the first bibliometric review developed on this topic and it can be extrapolated to any place in the world.

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Section: Discussionsupporting

confidence: 89%

Section: Discussioncontrasting

confidence: 85%

Section: Discussionmentioning

confidence: 99%

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The Effect of Corporate Social Responsibility on Earnings Management: Bibliometric Review

Jaén

León-Gómez

Madrid

2021

IJFS

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“…The legitimacy theory, on the other hand, argues that firms disguise their opportunistic behaviour through disclosing information voluntarily (Li et al, 2012;Parvin et al, 2020). Li, Mangena, & Pike (2012) argued that managers might voluntarily reveal information to shade their opportunistic behaviour and to protect themselves against any possible reaction from stockholders.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Does the quality of voluntary disclosure constrain earnings management in emerging economies? Evidence from Middle Eastern and North African banks

Salem

Ezeani

Gerged

et al. 2020

IJAIM

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Purpose This study aims to examine the influence of the quality of voluntary disclosure (QVD) on earnings management (EM) amongst a sample of commercial banks in the Middle East and North Africa (MENA) region. Design/methodology/approach Using a sample of 1,060 bank-year observations for the period 2006–2015, this paper developed a three-dimensional framework to measure the QVD, which considers the quantity, spread and usefulness of the information. Furthermore, this study examines the QVD-EM nexus using an ordinary least squares regression model. This technique is supplemented with conducting an instrumental variable regression model and a two-stage least squares model to overcome the potential occurrence of endogeneity problems. Findings The findings suggest that QVD is negatively attributed to EM in the context of MENA banks. The findings also confirm that the quality of financial reporting is enhanced by QVD dimensions that were considered in the framework, leading banks to less engagement in EM practices. In contrast, the influence of the quantity dimension (level) of the disclosed information has an insignificant impact on EM, while the spread and usefulness dimensions of VD are negatively and significantly associated with EM in the region. Research limitations/implications Although the results are robust to various measurements and to the possible occurrence of endogeneity problems, there are a few limitations should be acknowledged, which provides opportunities for future research. For example, the sample size is relatively small due to data accessibility issues. Likewise, the findings of the research might not be appropriate for non-financial sectors. These limitations provide a good opportunity for future studies to expand on the research by covering other developing economies and, thereby, enriching the understanding offered by this study. Practical implications This study offers several implications for bank managers, academics and policymakers. Firstly, it may help managers to appreciate the function and the importance of QVD in mitigating EM. Secondly, for academics, the study provides suggestive evidence on the impact of QVD on EM; however, future research may need to consider the role of morality and ethical behaviour across different environments in reducing excessive risk-taking and constraining earnings manipulation. Finally, it provides insights for policymakers and regulators to develop a framework or guidance that can help banks in providing high-QVD in the context of developing economies. Originality/value The study distinctively develops an innovative measurement for QVD using a new multi-dimensional model. This paper also bring new evidence on QVD complexity and its impact on EM practice from an under-researched developing context, namely, the MENA region.

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“…The external audit, as a mechanism for controlling management activity, has been the subject of numerous research studies, including that of Chen, Hope, Li, & Wang (2011), who believe that the intervention of external auditors helps to mitigate the opportunistic behaviour of managers and therefore constitutes a guarantee of the quality of financial information. Probably management activities are increased when asymmetric information is more important (Parvin, Rana & Shams, 2020) so an external audit quality may limit this behaviour. Also, García, Martínez, & Sánchez (2014) state that audit quality generally helps to restrict the practice of results management.…”

Section: Introductionmentioning

confidence: 99%

Legal Audit Quality and Fraud Risk: The Case of Tunisian Listed Companies

Lajmi¹,

Khiari²,

Ouertani³

2021

ijafr

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The aim of this study is to examine the impact of legal audit quality on the likelihood of accounting fraud, for a sample of 48 companies listed on the Tunisian stock market over the period between 2014 and 2018. Based on the logit panel regression, we have shown that the audit firm's membership in one of the Big networks and the rotation of external auditors are two major determinants in the reduction of cases of fraud in Tunisian companies. In addition, the results showed that joint audit deteriorates the quality of auditing and thus increases the risk of fraud. This study provides new insights in terms of legal audit and fraud risk in the Tunisian context based on the econometrics of panel data, which is a valuable method to measure the impact of several actions alone or simultaneously. It has allowed us to analyze the behaviors of companies by considering the effect of many proxies of legal audit quality. JEL Classification Codes: G32, M42, C23.

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Literature Review on the Association between Earnings Management and Corporate Social Responsibility

Cited by 10 publications

References 23 publications

The Effect of Corporate Social Responsibility on Earnings Management: Bibliometric Review

The Effect of Corporate Social Responsibility on Earnings Management: Bibliometric Review

Does the quality of voluntary disclosure constrain earnings management in emerging economies? Evidence from Middle Eastern and North African banks

Legal Audit Quality and Fraud Risk: The Case of Tunisian Listed Companies

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