Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

Earnings management, financial performance and the moderating effect of corporate social responsibility: evidencefrom France

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salma Chakroun ◽  
Anis Ben Amar ◽  
Anis Ben Amar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Performance ◽  
Moderating Effect ◽  
Least Square ◽  
Content Type ◽  
Academic Researchers ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of earnings management on financial performance. In addition, the authors investigate whether corporate social responsibility has a moderating effect on the impact of earnings management on financial performance. Design/methodology/approach The empirical study is based on a sample of French companies listed on the CAC-All-Tradable index over the period 2008–2018. Feasible generalized least square regression method is used to estimate the econometric models. Findings Based on panel data of 3,003 French firm-year observations, the authors demonstrate that earnings management has a negative and significant impact on financial performance. Indeed, corporate social responsibility moderates positively the negative impact of earnings management on financial performance in the French context. Practical implications The findings have several implications for regulatory, investors and academic researchers. For regulators, it is appropriate to promote more several standards related to corporate social responsibility and earnings management. For investors, considering societal issues is very important in making decisions. For academic researchers, the results show that it is important to discover how corporate social responsibility can influence the relation between earnings management and financial performance. Originality/value The existing literature has generally focused on the impact of earnings management on financial performance and the empirical tests did not yield similar results. The study shows that corporate social responsibility has a moderating role in determining the impact of earnings management on financial performance.

scholarly journals Corporate Social Responsibility and Accrual-Based Earnings Management: Evidence from Nigeria

2021 ◽  
Vol 12 (5) ◽  
pp. 15
Author(s):  
Chinwe Claire Amake ◽  
Obehioye Usiomon Akogo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Stock Exchange ◽  
Control Variable ◽  
Least Square ◽  
Firm Characteristics ◽  
Manufacturing Companies ◽  
Socially Responsible ◽  
Corporate Social

This study examines the effect of corporate social responsibility (CSR) on accrual based-earnings management (AEM) nexus. We employed the use of panel least square analysis to test twenty (20) manufacturing companies quoted on the Nigerian Stock Exchange (NSE) for a period of seven (7) years (2013-2019). The study used corporate social responsibility as the independent variable, earnings management as the dependent variable and firm characteristics variables as the control variable. In utilizing the econometric models unreceptive to endogeneity, our result shows that corporate social responsibility has a positive and significant relationship with accrual based-earnings management. In addition, the study finds that firm size and leverage both have a negative and insignificant relationship with accrual based-earning management while profitability has a positive but insignificant relationship with accrual based-earnings management in Nigeria. The results show that more socially responsible firms have higher quality accruals. This suggests that manufacturing firms in Nigeria are likely to engage more in earnings management while increasing their corporate social responsibility. Hence, managers in manufacturing companies in Nigeria, have a tendency to take advantage of corporate social responsibility practices according to the environment they find themselves in.   Received: 8 July 2021 / Accepted: 8 August 2021 / Published: 5 September 2021

Corporate social responsibility, family ownership and earnings management: the case of Indonesia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rini Kumala ◽  
Sylvia Veronica Siregar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Stock Exchange ◽  
Financial Statements ◽  
Negative Association ◽  
Family Ownership ◽  
Content Type ◽  
The Usa ◽  
Corporate Social

Purpose This paper aims to examine the association of corporate social responsibility (CSR), family ownership and earnings management. Design/methodology/approach The authors specifically examine mining companies listed in Indonesia Stock Exchange during 2012-2014. Total observations are 105 firm-years. Research data are collected from sustainability reports, annual reports and annual financial statements. Data are analysed using panel data regression. Findings The evidence suggests a negative association between corporate social responsibility disclosures (CSRDs) and earnings management. The authors also examine the direct and moderating role of family ownership. The authors find a positive association between family ownership and earnings management. In addition, family ownership strengthens the negative association between CSR and earnings management. Research limitations/implications This research only examines mining companies listed in Indonesia Stock Exchange, which limit the generalisation of the results. Practical implications The results should useful for: investors wishing to use the level of CSRD as an indicator of firm ethics, especially in relation to family-owned firms; capital-market regulators wishing to improve market transparency by introducing requirements to encourage more CSRD; and other users of financial statements, especially financial analysts to consider ownership structure, specifically family ownership. Originality/value Previous studies have mainly focussed on companies in the USA. This paper adds to the body of knowledge regarding whether the positive relationship between family ownership and CSR is also present outside the USA, especially in emerging countries. Further, this study examines the effect of family ownership on the association of CSR and earnings management, which rarely examined in previous studies.

scholarly journals Do Corporate Social Responsibility and Investor Protection Limit Earnings Management? Evidence from Indonesia and Malaysia

2021 ◽  
Vol 22 (3) ◽  
pp. 482-499
Author(s):  
Muliati Muliati ◽  
Arung Gihna Mayapada ◽  
Abdul Pattawe
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Unethical Behavior ◽  
Stock Exchange ◽  
Investor Protection ◽  
Testing Technique ◽  
Corporate Social ◽  
The Impact ◽  
The Relationship

Research aims: This study aims to investigate the effect of corporate social responsibility on earnings management by considering the impact of investor protection.Design/Methodology/Approach: This study’s population was plantation companies listed in Indonesia Stock Exchange and Malaysia Stock Exchange. The period of this study was from 2012 to 2017. Moreover, the hypotheses testing technique used was multiple regression analysis.Research findings: This study’s results revealed that corporate social responsibility disclosure and investor protection significantly affected earnings management.Theoretical contribution/Originality: These results support the ethics hypothesis stating that companies committed to ethics view earnings management unethical behavior. This study also verifies the relationship between legal systems and earnings management. 

Family control and corporate social responsibility: Evidence from Iranian companies

2017 ◽  
Vol 04 (04) ◽  
pp. 1750046 ◽  
Author(s):  
Morteza Safaee ◽  
Mehdi Safari Gerayli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Multivariate Regression Analysis ◽  
Family Ownership ◽  
Analysis Model ◽  
Family Control ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Impact

Today, the necessity for disclosing corporate social responsibility (henceforth, CSR) to increase transparency and non-financial accountability in capital markets have attracted the attention of regulators and stock exchange. Therefore, the present study aims to investigate the impact of family ownership on CSR level. To do so, a checklist of 39 items of disclosure which accord with Iran’s reporting environment was employed to measure the social responsibility. The research hypothesis was developed based on the data collected from 98 firms listed in Tehran Stock Exchange during the years 2011–2015 and then tested using multivariate regression analysis model based on panel data. The results of the study reveal that family ownership reduces the level of CSR disclosure. The findings of current study not only fill existing gaps in the field, but also contribute to decision-making practices in Stock Exchange.

scholarly journals The Impact of Corporate Social Responsibility on Accrual Earnings Management and Real Earnings Management

ETIKONOMI ◽  
2016 ◽  
Vol 15 (1) ◽  
pp. 63-74
Author(s):  
Soliyah Wulandari
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Result Show ◽  
Report Data ◽  
Corporate Social ◽  
Financial Company ◽  
The Impact

This study examines the influence of Corporate Social Responsibility on accrual earnings management and real earnings management. This study using control variables company size, KAP quality, and leverage. Sample of this study Obtained with purposive sampling for all non-financial company listed in the Indonesia Stock Exchange from 2001 to 2012. This study will use the data secondary, such as annual report. Data analysis will perform using multiple regressions. Result show that Corporate Social Responsibility is influence to accrual earnings management. Corporate Social Responsibility is a real influence to both abnormal earnings management of cash flow from operations and abnormal of production costsDOI: 10.15408/etk.v15i1.3116

scholarly journals Corporate Social Responsibility Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening

2020 ◽  
Vol 17 (4) ◽  
pp. 607-618
Author(s):  
Ummu Kalsum
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Partial Least Square ◽  
Least Square ◽  
Corporate Social ◽  
The Impact

This study aims to examine the effect of Corporate Social Responsibility (CSR) on Company Value and Profitability and how the impact of disclosure of Corporate Social Responsibility (CSR) on firm value through Profitability as an Intervening Variable. This study uses a sample of mining companies listed on the Stock Exchange and uses a purposive sampling technique. This research is quantitative. The data used is secondary data and uses data collection methods, namely documentation and literature. A study conducted using Partial Least Square (PLS) shows that Corporate Social responsibility has a negative and insignificant effect on firm value. Corporate Social responsibility has a positive and significant impact on Profitability, and Profitability has a negative and little impact on Firm Value and Profitability can mediate Corporate Social responsibility on Firm Value as an intervening variable

Do dimensions of corporate social responsibility affect earnings management?

2018 ◽  
Vol 16 (2) ◽  
pp. 348-370 ◽  
Author(s):  
Anis Ben Amar ◽  
Salma Chakroun
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Earnings Management ◽  
Negative Impact ◽  
Content Type ◽  
Iso 26000 ◽  
French Firm ◽  
Corporate Social ◽  
The Impact

Purpose This paper aims to examine the impact of corporate social responsibility (CSR) on earnings management measured by discretionary accruals based on Dechow et al.’s (1995) model with cash flow from operation. Design/methodology/approach This study uses a sample of 119 French non-financial companies listed on the CAC All Tradable index for the 2010-2014 period. All used regressions for the analysis are estimated based on panel data with random-effects. Findings Based on a panel data of 595 French firm-year observations during the period 2010-2014, the authors find a negative impact of CSR on earnings management, and some CSR dimensions negatively impact earnings management. Practical implications The results suggest several implications for regulatory in France, as well as those in other countries that try to implement CSR activities. Originality/value The originality of this work lies in the division of CSR into sub-dimensions defined by the ISO 26000 standard. This division reduces the complexity of societal reality and obeys a coherent institutional logic. In addition, it enables the operationalization of CSR in a new way to determine the impact of CSR on earnings management.

scholarly journals The impact of ceo's personal characteristics on corporate social responsibility: evidence from Bangladesh

2021 ◽  
Vol 12 (1) ◽  
pp. 032-053
Author(s):  
Mir Md Nazrul Islam ◽  
Dejun Wu ◽  
Muhammad Usman ◽  
Muhammad Imran Nazir
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Welfare ◽  
Corporate Strategy ◽  
Stock Exchange ◽  
Personal Characteristics ◽  
Least Square ◽  
Corporate Social ◽  
The Impact ◽  
Better Than

Purpose: Advanced CSR research is still in the context of developed countries. Very limited research is available in the CSR system of developing countries such as Bangladesh. Specifically, this paper examines the impact of CEOs personal characteristics on CSR among the public listed company in Bangladesh.Theoretical Framework: This study also focuses on six firm characteristics firm size, profitability board size, firm leverage, sales and cash.Design/Methodology/Approach: Using ordinary least square (OLS) regression analysis on 100 public listed firms at Dhaka stock exchange (DSE) and Chittagong stock exchange (CSE) in Bangladesh.Originality/Value: this study provides new evidence on the relationship between CEO Characteristics and corporate social responsibility in Bangladesh.Findings: The results show that CEO's impressive positive and rationally significant, which means male is better than women, corporate strategy is better than women in their strategy. One of the most important reasons for education because education also results CEO business education positive and significant, which ultimately affects the organization. The Chief Executive Officer of the organization is an important part of religion and its religion, so that the religion of CEO is Islam and Christian, then he will have more impact on the social welfare organization. The variability of CEO's religion (Islam and Christian) is positive, which affects the company's social welfare, which ultimately increases the company's value.

Can Corporate Social Responsibility Decrease the Negative Influence of Financial Distress on Accounting Quality?

2021 ◽  
Vol 13 (19) ◽  
pp. 11124
Author(s):  
Jun Hyeok Choi ◽  
Saerona Kim ◽  
Dong-Hoon Yang ◽  
Kwanghee Cho
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Distress ◽  
Negative Influence ◽  
Accounting Quality ◽  
Distressed Firms ◽  
Corporate Social ◽  
The Impact ◽  
Positive Effect

This study aimed to test how corporate social responsibility (CSR) can affect the impact of corporate financial distress on earnings management. Based on the existing literature, distressed firms tend to hide their financial crises through earnings manipulation. However, as CSR can positively affect companies in terms of performance, risk reduction, and market response, the better a firm’s CSR is the less managers will attempt earnings management even if they experience temporary distress. Consistent with the literature, test results using Korean-listed companies show that distress increased earnings management, and we confirmed that CSR weakened the positive effect of distress on earnings management. After testing each of the CSR subcategories, significant results were found mainly on environmental performance, reflecting the globally increasing interest in environmental issues. This study contributes to the literature on distress and earnings management, which rarely considers CSR as a moderating factor.

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