Corporate social responsibility and managerial short-termism

Yujing Gong and Kung-Cheng Ho

Asia-Pacific Journal of Accounting & Economics, 2021, vol. 28, issue 5, 604-630

Abstract: This study examines whether corporate social responsibility (CSR) mitigates or exacerbates managerial short-termism. Using earnings management (EM) as a proxy for managerial short-termism, we find that socially responsible firms engage in less accrual-based and real EM activities. This finding supports the argument that socially responsible firms not only focus on current profits but also maintain long-term sustainable development. Further analyses reveal that the moderate effect of CSR on managerial short-termism is evident only for mandatory CSR disclosure firms. This suggests that regulatory non-financial reporting potentially mitigates information asymmetry and effectively constrains managerial short-termism.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2018.1540941 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:raaexx:v:28:y:2021:i:5:p:604-630

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2018.1540941

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().