Do dimensions of corporate social responsibility affect earnings management?

Anis Ben Amar and Salma Chakroun

Journal of Financial Reporting and Accounting, 2018, vol. 16, issue 2, 348-370

Abstract: Purpose - This paper aims to examine the impact of corporate social responsibility (CSR) on earnings management measured by discretionary accruals based onDechowet al.’s (1995) model with cash flow from operation. Design/methodology/approach - This study uses a sample of 119 French non-financial companies listed on the CAC All Tradable index for the 2010-2014 period. All used regressions for the analysis are estimated based on panel data with random-effects. Findings - Based on a panel data of 595 French firm-year observations during the period 2010-2014, the authors find a negative impact of CSR on earnings management, and some CSR dimensions negatively impact earnings management. Practical implications - The results suggest several implications for regulatory in France, as well as those in other countries that try to implement CSR activities. Originality/value - The originality of this work lies in the division of CSR into sub-dimensions defined by the ISO 26000 standard. This division reduces the complexity of societal reality and obeys a coherent institutional logic. In addition, it enables the operationalization of CSR in a new way to determine the impact of CSR on earnings management.

Keywords: Corporate governance; Corporate social responsibility; Earnings management; Corporate social responsibility dimensions (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-05-2017-0033

DOI: 10.1108/JFRA-05-2017-0033

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