A Study on Relationship between Corporate Social Responsibility and Earnings Management-Evidence from Chinese Listed Companies

• Main Authors: JIAN JHIH-YUAN, 簡致淵
• Other Authors: Erin H. C. Kao
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/v9tf6h

碩士 === 嶺東科技大學 === 財務金融研究所 === 102 === This study examines the relationship between corporate social responsibility (CSR) and earnings management in Chinese listed firms. We use the discretionary accruals as a proxy for earnings management behavior, and adopt by ”Overall Ranking Listed of Corporate Social responsibility” published by Southern Weekend from 2008 to 2012 as CSR sample, and we match non-CSR firms to CSR firms are based on the same industry and similar size in our sample. Furthermore, considering the firm structures are different between SOEs and non-SOEs, we also examine these two subsamples respectively. The result shows that CSR engagement has a significant negative effect on earnings management. CSR firms appear to reduce or avoid earnings manipulations through discretionary accruals, as compared to non-CSR firms. The result implies that firms with corporate social responsibility tend to be honest, trustworthy, and ethical, therefore publish more transparent financial report.