The effect of corporate social responsibility practices on real earnings management: evidence from a European ESG data

Chouaibi, Yamina; Zouari, Ghazi

doi:10.1057/s41310-021-00125-1

Cited by 35 publications

(30 citation statements)

References 57 publications

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“…Recent empirical studies show a positive relationship between CSR reporting and leverage. More specifically, Chouaibi and Zouari (2021) argue that firms with a high level of leverage are the most likely to engage in CSR activities to reduce agency costs. LEV = the ratio of long-term debt plus debt included in current liabilities to total assets.…”

Section: Methodsmentioning

confidence: 99%

“…Nowadays, large companies specifically devote considerable effort and money disseminating information about their social and environmental performance. In this regard, previous studies focused, basically, on studying the effect of CSR on the accounting management of earnings and on its effect on the cost of capital (Chouaibi and Zouari, 2021). However, a study by Türkel et al (2016) on the European Union has provided evidence that CSR is a tool that companies may voluntarily decide to adapt to contribute to a better society and a cleaner environment.…”

Section: Introductionmentioning

confidence: 99%

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The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context

Chouaibi

Rossi

Abdessamed

2021

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Purpose The purpose of this paper is to examine the negative impact of corporate social responsibility (CSR), business ethics and responsible corporate governance on tax avoidance within a sample of 119 French industrial companies from 2010 to 2019. Design/methodology/approach To test the current hypotheses of this study, the authors applied linear regressions with panel data using the Thomson Reuters ASSET4 database from a sample of 119 French companies over the period of 2010–2019. Findings The results show that companies with no conduction of CSR activities are more aggressive in the avoidance of taxes than others, confirming the idea that CSR could be seen as a facet of corporate culture that affects business corporate tax avoidance. Practical implications The results have interesting implications for investors and other partners who are interested in the business. Thus, for the government, to develop financial transparency, the improvement of the means of legal action such as the tax administration and the support of the action of civil society are pivotal to strengthen the legitimacy of tax. Originality/value This work is one of the studies that examine the effect of CSR, ethics and responsible governance on tax avoidance.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context

Chouaibi

Rossi

Abdessamed

2021

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“…The body of academic research indicates that for a firm to ensure its continued operational and financial viability, it is essential to formulate an effective working capital strategy, as working capital significantly impacts the safety of a firm's finances and operations Zimon, 2021;Zimon & Tarighi, 2021). In addition, the connection between ESGP as sustainable development and corporate finance has enticed investors, decision-makers, and other information users as a crucial means of enhancing firm value (Chouaibi & Zouari, 2022;Malik, 2015;Rezaee, 2016). Moreover, firms that prioritize investments in ESG can boost their earnings and long-term sustainability, reduce costs, increase productivity, minimize risk potential, provide opportunities to generate revenue, and provide other benefits (Eccles et al, 2014;Malik, 2015;Rezaee, 2016).…”

mentioning

confidence: 99%

Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States

Habib

2022

FMIR

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This study evaluates the efficiency of U.S. firms’ working capital management (WCME) by employing the data envelopment analysis technique (DEA). This study uses regression analysis to examine the impact of WCME and environmental, social, and governance (ESGP) performance on U.S. firm value. This study uses a data sample consisting of 964 firm-year observations from a longitudinal panel collected from 2016 to 2019. Endogeneity issues and the employment of additional analyses for robustness were considered. The results indicated that most firms under investigation were relatively inadequate regarding WCME and required correctional efforts by decision-makers to accomplish most reasonable efficiency, directly related to enhancing firm sales and net income. Additionally, the results reveal significant and positive influences of WCME and ESGP on firm value. The implications of this study would push decision-makers to employ the most reasonable procedures and strategies to improve the activities of a firm’s WCM and ESG to boost its value and excel in the business environment.

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“…They also find that firms with a higher ethical commitment engage in less earnings management, predict future cash flows more correctly, and report earnings more conservatively. Chouaibi and Zouari (2021) find a negative relationship between EM and a firm's ethical behavior. According to these findings, the more important the socially responsible and ethical behaviors are, the less the firm engages in an aggressive EM practices.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 81%

The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence

ŞEKER

Şengür

2021

ECO

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This study investigates the relationship between environmental, social, and governance (ESG) performance and financial reporting quality (FRQ) through the use of data from Datastream, Refinitive Eikon and ASSET4 databases. The initial sample of the study covers all available firms in ASSET4. After eliminating firms with missing data, the final sample of the study consists of 16,072 firm-year observations from 35 countries, covering the years from 2010 to 2017. Several FRQ proxies and firms’ ESG performance indicators are used in the study. The panel regression findings reveal that firms’ ESG performance has a positive impact on FRQ. In other words, it has been found that improving the ESG performance of firms yields higher FRQs. As for ESG pillars, this study finds a positive and statistically significant relationship between FRQ and environmental and governance pillars. The study extends the literature by providing international evidence not only about the aggregate effects of firms’ ESG performance on FRQ but also the effects of each of the three ESG pillars on FRQ.

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The effect of corporate social responsibility practices on real earnings management: evidence from a European ESG data

Cited by 35 publications

References 57 publications

The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context

The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context

Does the efficiency of working capital management and environmental, social, and governance performance affect a firm’s value? Evidence from the United States

The Impact of Environmental, Social, and Governance (ESG) Performance on Financial Reporting Quality: International Evidence

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