Market-oriented–debt-to-equity swap, corporate social responsibility and earnings management

Binfeng Ma, Qing Di and Maozheng Fu

International Review of Economics & Finance, 2025, vol. 98, issue C

Abstract: This comprehensive investigation explores the intricate interplay between market-oriented–debt-to-equity swap (MDS) and enterprise earnings management (EM) practices. Results reveal that implementing such MDS serves as a deterrent to EM practices within corporations, with corporate social responsibility playing an important mediating role. Furthermore, we uncover nuanced differences in the impact of these swaps on EM strategies, depending on the inherent nature of the enterprises under consideration. Findings remain robust even after rigorous testing, reinforcing the idea that MDS shapes and refines corporate behavior toward more ethical and transparent earnings reporting practices, particularly when corporate social responsibility is factored into the equation.

Keywords: Market-oriented–debt-to-equity swap; Enterprise earnings management; Social responsibility (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000450

DOI: 10.1016/j.iref.2025.103882

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