Corporate environmental disclosure and earnings management: does national culture matter?: International evidence

Roua Ardhaoui and Anis Ben Amar

Accounting Research Journal, 2026, vol. 39, issue 3, 383-415

Abstract: PurposeThis paper aims to investigate the impact of corporate environmental disclosure (CED) on earnings management (EM) and to further examine whether the six dimensions of national culture influence this relationship.Design/methodology/approachThis sample includes 2,286 international firms listed on the ESG index for the period 2010–2022. This paper excluded financial companies due to their specific capital structure and regulatory requirements, and companies with missing data. The feasible generalized least squares (FGLS) regression method is used to estimate the econometric models. For the robustness analyses, this paper included an alternative measure of the dependent variable (accrual-based versus real activity manipulation). They applied the dynamic dimension of the data set using the generalized method of moments (GMM) to control for endogeneity and included a comparative study of legal systems.FindingsExpectedly, the results showed a negative relationship between CED and EM. Furthermore, the findings suggest that a masculine culture and a high-power distance index are positively correlated with CED and EM practices. By contrast, individualism, uncertainty avoidance and long-term orientation were found to negatively moderate the relationship between environmental disclosure and EM. Moreover, indulgence appears to have no significant effect on this relationship.Originality/valueThis paper extends the existing literature by exploring the moderating effect of national culture dimensions on the relationship between CED and EM in an international context.

Keywords: Endogeneity; Earnings Management; Accruals; Corporate environmental disclosure (CED); National culture (NC) (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-05-2025-0188

DOI: 10.1108/ARJ-05-2025-0188

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