The Study of the Relationships among Diversity in the Boardroom, Corporate Social Responsibility, and Earnings Management in China

• Main Authors: Mei-Juan Huang, 黃美娟
• Other Authors: Chih-Shun Hsu
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/562u4x

碩士 === 淡江大學 === 會計學系碩士班 === 103 === This study aims to examine whether board diversity constrains earnings management (EM), to investigate the relationship between corporate social responsibility (CSR) and EM, and further to ascertain whether board diversity moderates the relationship between CSR and EM. The study uses real earnings management (REM) as the proxy variable for listed companies in China Security Index 300 (CSI 300) in 2013, and employs the demography of board members as composite diversity index to explore its effect on REM. The findings of the study show a negative relationship between board diversity and REM. Firms with higher board diversity are less likely to manage earnings through sales manipulation. Further analysis indicates that centralized age of board member and big size of board reduce REM. Moreover, a negative relationship exists between CSR and REM, particularly for firms with well-developed CSR tending to constrain REM through reduction of discretionary expenditures. Furthermore, there exists negative moderating effect of duality on the relationship between CSR and REM. The contribution of the study, in addition to supplementing the existing management literature of the boardroom, provides practical reference for executives of China companies on their policies for the boardroom mechanism.