Corporate social responsibility and earnings quality: Evidence from China

Zabihollah Rezaee, Huan Dou and Huili Zhang

Global Finance Journal, 2020, vol. 45, issue C

Abstract: We examine the association between corporate social responsibility (CSR) and earnings quality using CSR ranking data from Rankins (RKS) and four measures of earnings quality. Using a sample of 2580 Chinese listed firms for fiscal years 2009–2015, with 14,807 firm-year observations, we find that CSR firms and those with higher CSR ratings are less likely to engage in earnings management than non-CSR firms and those with lower CSR ratings, and their earnings are more persistent and more accurately predict future cash flows from operations. State ownership and marketization moderate the relationship between CSR disclosures and earnings quality.

Keywords: Corporate social responsibility; Corporate governance; Earnings quality; Chinese firms; State-owned-enterprises (SOEs); Marketization (search for similar items in EconPapers)
JEL-codes: G14 G18 M42 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:45:y:2020:i:c:s1044028319300249

DOI: 10.1016/j.gfj.2019.05.002

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