Does confucianism influence corporate earnings management?

Wei Yu, Keying Zhu, Huiqin Huang and Belaynesh Teklay

Research in International Business and Finance, 2021, vol. 56, issue C

Abstract: This paper investigates the effect of Confucianism on corporate earnings management. Using a sample of Chinese listed firms from 2007 to 2017, we find that corporate earnings management is negatively associated with the popularity of Confucianism. Our findings also reveal that the effect of Confucianism is particularly strong among firms characterized with weaker internal control and external supervision or located in areas with lower level of marketization. Our findings shed important light on how culture improves the quality of financial reporting in emerging markets.

Keywords: Confucianism; Earnings management; Corporate governance (search for similar items in EconPapers)
JEL-codes: G39 G41 M40 O53 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:56:y:2021:i:c:s0275531921000118

DOI: 10.1016/j.ribaf.2021.101390

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