scholarly journals La asociación entre las Actividades de Responsabilidad Social Corporativa y la calidad de los ingresos: Evidencia de la industria extractiva

2019 ◽  
Vol 22 (1) ◽  
pp. 112-121 ◽  
Author(s):  
Tito Tomas Siueia ◽  
Jianling Wang
Keyword(s):  
Earnings Management ◽  
Ethical Theory ◽  
Earnings Quality ◽  
Negative Relationship ◽  
Discretionary Accruals ◽  
Panel Data Regression ◽  
Data Regression ◽  
Research Questions ◽  
Corporate Social ◽  
The Relationship

Building on the ethical theory to solve the research questions, we examine the relationship between Corporate Social Responsibility Disclosure (CSRD) and Earnings Quality (EQ). Using 368 firm-year observations covering the 2010-2017 period. In so doing, we applied content analysis to assess the CSRD dimensions, and we applied discretionary accruals as a proxy of EQ activity. Based on panel data regression, we find a significant and negative relationship between CSRD and EQ in Mozambican extractive industry. Empirical evidence also shows that the influence of positive CSRD indicator (CSRD strengths scores) is much stronger than that negative CSRD indicator (CSRD concerns scores) in reducing earnings quality. These findings are consistent with the idea that the opportunistic managers use CSRD to reach their particular interest, suggesting that the managers are using CSRD as a strategic device to engage in earnings management (poorer earnings quality). The results are robust to alternative proxy measures of CSRD and earnings quality. Con base en la teoría ética para resolver las cuestiones de investigación, examinamos la relación entre Divulgación de Responsabilidad Social Corporativa (CSRD) y la Calidad de los Ingresos (EQ). Usando 368 observaciones de año base cubriendo el período 2010-2017. Al hacer esto, aplicamos el análisis de contenido para evaluar las dimensiones de la CSRD y aplicamos acrecimientos discrecionales como proxy de la actividad de EQ. Con base en la regresión de datos en panel, encontramos una relación significativa y negativa entre el CSRD y el EQ en la industria extractiva de Mozambique. La evidencia empírica también muestra que la influencia del indicador positivo de CSRD (puntuaciones de fuerza CSRD) es mucho más fuerte que el indicador negativo de CSRD (CSRD se refiere a las puntuaciones) en la reducción de la calidad de ingresos. Estas constataciones son consistentes con la idea de que los gerentes oportunistas utilizan la actividad de RSCD para alcanzar su interés particular, sugiriendo que los gerentes están usando el CSRD como un dispositivo estratégico para involucrarse en la gestión de resultados (peor EQ). Los resultados son robustos a medidas alternativas de proxy del CSRD y la EQ. Industria extractiva.

Corporate social responsibility disclosures and earnings quality

2015 ◽  
Vol 30 (3) ◽  
pp. 277-298 ◽  
Author(s):  
Mohammad Badrul Muttakin ◽  
Arifur Khan ◽  
Mohammad I Azim
Keyword(s):  
Earnings Management ◽  
Earnings Quality ◽  
Discretionary Accruals ◽  
Financial Reports ◽  
Content Type ◽  
Opportunistic Behaviour ◽  
Context Specific ◽  
Corporate Social ◽  
The Relationship ◽  
Responsible Manner

Purpose – This paper aims to explore the relationship between corporate social responsibility (CSR) disclosures and earnings quality proxied by earnings accruals. Specifically, we examine whether CSR disclosures are context-specific, that is, whether companies dominated by powerful stakeholders are obliged to behave in a responsible manner to constrain earnings management, thereby reporting higher-quality earnings to investors. Design/methodology/approach – This paper explores the relationship between CSR disclosures and earnings quality proxied by earnings accruals. Specifically, we examine whether CSR disclosures are context-specific, that is, whether companies dominated by powerful stakeholders are obliged to behave in a responsible manner to constrain earnings management, thereby reporting higher-quality earnings to investors. Findings – Results show that managers in an emerging economy manage earnings when they provide more CSR disclosures. Such earnings management is achieved through income increasing discretionary accruals. Furthermore, companies from export-oriented industries dominated by powerful stakeholders (international buyers) disclosing more CSR activities, provide transparent financial reports through constraining earnings management. Originality/value – The findings of this study are significant for both investors and policymakers. Investors should not take for granted that firms engage in CSR activities, behave ethically and provide transparent financial reports. As we document that firms might manipulate earnings through discretionary accruals and provide less transparent financial reports to shareholders, the credibility of firms’ CSR policies should be assessed with caution. Policies directing at promoting socially responsible practices instead of motivating the desired behaviour, may provide managers with additional incentives to utilise CSR for opportunistic behaviour. Thus, policymakers need to be cautious about this opportunistic behaviour and enhance monitoring to enforce social compliance. Possibly, some guidelines can be introduced to confirm that CSR disclosures are based on actual practice and not just a “green wash” statement to deceive stakeholders.

scholarly journals Hubungan Corporate Social Responsibility dengan Earnings Quality pada Perusahaan yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2016-2019

2021 ◽  
Vol 13 (2) ◽  
pp. 1
Author(s):  
Priscillia Puspita Lestari ◽  
Yie Ke Feliana
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Discretionary Accruals ◽  
Bottom Line ◽  
Corporate Social ◽  
The Relationship

Abstract Earnings is one of some important things that company stakeholders pay attention to in making decisions related to the company. Therefore, the quality of earnings reported by companies need to be ensured that it accurately reflects tha real conditions of the company. Besides earnings, stakeholders also pay attention to corporate social responsibility activities that has been done by company as the implementation of triple bottom line concept. This study aims to investigate the relationship between corporate social responsibility (CSR) and earnings quality reported by firms. CSR is measured by using the CSRD Index based on 91 GRI criteria, while earnings quality is proxied by accrual earnings management and measured by calculating the discretionary accruals. The research object in this study is all entities listed on the Indonesia Stock Exchange (IDX) in the period of 2016-2019. After selecting companies based on predetermined sample criteria, the totals of sample numbers in this study is 191 companies in 2016-2019. The result of this study prove that there is no significant relationship between CSR and earnings quality. Keywords: corporate social responsibility, earnings quality, earnings management

scholarly journals Differentiation Strategy, CSR, And Real Activities Earnings Management: Evidence From Korea

2017 ◽  
Vol 33 (4) ◽  
pp. 667 ◽  
Author(s):  
Sungbin Chun ◽  
Eunho Cho
Keyword(s):  
Earnings Management ◽  
Negative Relationship ◽  
Synergy Effect ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Sensitivity Tests ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

We empirically investigate whether a differentiation strategy constrains real activities earnings management (RAEM). Further, considering corporate social responsibility (CSR) activities are a popular tool of differentiation strategy, we examine whether interactive synergy between CSR activities and the differentiation strategy strengthens the negative relationship between differentiation strategy and RAEM. Using a sample of 659 firm-year observations of Korean manufacturing listed firms during 2005-2010, we find that differentiation strategy is negatively associated with RAEM, suggesting that firms pursuing a differentiation strategy are likely to refrain from managing earnings using RAEM that goes against their strategy. We also observe that interactive synergy between differentiation and CSR strengthens the negative relationship between differentiation strategy and RAEM, implying that synergy effect between CSR and differentiation strategy even more constrains RAEM that is in conflict with both CSR and differentiation strategy. These findings are robust after we perform sensitivity tests. This study contributes to the literature by providing the first evidence on the relationship between differentiation strategy and RAEM and the moderating role of CSR activities on the relationship.

The Relationship Between Capital Structure and Performance in Islamic Rural Bank (BPRS): Evidence Indonesia

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Rofiul Wahyudi ◽  
Annisa Fithria ◽  
Sartini Wardiwiyono
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Advantages And Disadvantages ◽  
Panel Data Regression ◽  
Data Regression ◽  
Equity Ratio ◽  
Relationship Capital ◽  
And Performance ◽  
The Relationship ◽  
The Capital Structure

The capital structure is important for financial institutions including Sharia Rural Bank (BPRS). However, BPRS has a problem that is the limited capital owned so that it affects performance. The main objective of this paper is to investigate the relationship capital structure and performance of the Islamic Rural Banks (BPRS) in Indonesia. The study using panel data regression to measure the capital structure on performance. The research sample used 164 BPRS that operate in 33 provinces from 2010 until 2017. The results show that capital structure affects DER (debt to equity ratio) and DAR (debt to asset ratio), but negatively affects ETA (equity to total Asset ratio). These findings indicate that there is an increase in the capital structure of the performance of the BPRS in Indonesia. Hence, bank managers must reach a trade-off between the advantages and disadvantages of creating liquidity, and consider the negative relationship between liquidity creation and bank performance when making decisions.

scholarly journals Analysing the relationship between unemployment benefits and unemployment duration

2020 ◽  
Vol 42 (3) ◽  
pp. 280-297
Author(s):  
Laura Južnik Rotar ◽  
Sabina Krsnik
Keyword(s):  
Social Policy ◽  
Negative Relationship ◽  
Unemployment Duration ◽  
Unemployment Benefits ◽  
The European Union ◽  
Homogeneous Groups ◽  
Panel Data Regression ◽  
Data Regression ◽  
Duration Of Unemployment ◽  
The Relationship

AbstractThe aim of this paper is to analyse the relationship between unemployment benefits and durations of unemployment with respect to different approaches in social policy. The hypothesis of the research is that unemployment benefits negatively affect the duration of unemployment. An analysis of the relationship concerning unemployment benefits and duration of unemployment within the European Union Member States (EU-28) between 2006–2018 using panel data regression approach was conducted. The sample was split into sub-samples in order to get more homogeneous groups of EU-28 countries. Estimation results suggest that the more generous a social policy, the more prevalent the negative relationship between unemployment duration and unemployment benefits. Our results also revealed that the better the economic situation, the less pressure is put on unemployment benefits and on the duration of unemployment.

scholarly journals The Relationship Between Accrual-Based Earnings Management and Real Earnings Management: Reference to the Polish Capital Market

2020 ◽  
Vol 20 (2) ◽  
pp. 66-81
Author(s):  
Michał Comporek
Keyword(s):  
Earnings Management ◽  
Empirical Research ◽  
Capital Market ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Discretionary Accruals ◽  
Research Area ◽  
Real Earnings Management ◽  
Cross Sectional ◽  
The Relationship

Abstract Research background: The literature on the subject matter emphasizes the lack of empirical research on the relationships between accrual-based earnings management (AEM) and real earnings management (REM), while studies conducted so far are characterized by highly ambiguous results. Purpose: The main aim of the paper is to present the results of empirical research on the relationships between the AEM and REM practices used to create financial results in industrial public companies listed on the WSE. Research methodology: The research sample concerns 72 listed companies whose shares were traded on the Warsaw Stock Exchange (WSE) for a minimum 13 years in the adopted reference period of 2003–2017. The estimation of AEM and REM practices was made by using: the Jones model, the Kang-Sivaramakrishnan model and the Roychowdhury methodology. Results: The empirical results allowed showing the existence of a statistically significant, negative relationship between discretionary accruals and the abnormal level of an operational cash flow indicator, as well as between discretionary accruals and the total REM indicator. An in-depth cross-sectional analysis showed the existence of significantly differentiated relationships between the studied variables in individual branches of industry. Novelty: Research on the relationship between AEM and REM practices in the context of the Polish capital market has not been carried out so far, hence it can be considered a new research area in which there is a justified need to deepen theoretical and empirical research on the EM phenomenon.

scholarly journals PENGARUH ASIMETRI INFORMASI DAN LEVERAGE TERHADAP MANAJEMEN LABA PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2016-2018

2019 ◽  
Vol 2 (2) ◽  
pp. 145
Author(s):  
Ayu Apriliani Hidayat ◽  
Ahmad Juanda ◽  
Ahmad Wajuya Jati
Keyword(s):  
Earnings Management ◽  
Information Asymmetry ◽  
Sampling Method ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Positive Relation ◽  
Negative Relation ◽  
Mining Companies ◽  
Panel Data Regression ◽  
Data Regression

This study aims to examine the relation of information asymmetry and leverage to earnings management in mining companies listed at Indonesian Stock Exchange. Earnings  management as the dependent variabel is measured by discretionary accruals. The populations of this study were all mining companies that listed at Indonesian Stock Exchange period 2016-2018. The sample used in this research is about 24  companies through purposive sampling method. The methode of analysis used in this study is panel data regression. The results showed that the  information asymmetry hasn’t been approved for having significant and negative relation on earnings management. However, leverage have significant and positive relation on earnings management.

Earnings management and corporate investment efficiency: does the board of directors matter?

2019 ◽  
Vol 17 (4) ◽  
pp. 650-670 ◽  
Author(s):  
Bilel Bzeouich ◽  
Faten Lakhal ◽  
Neila Dammak
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Management Practices ◽  
Earnings Quality ◽  
Theoretical Perspective ◽  
Negative Relationship ◽  
Corporate Investment ◽  
Investment Efficiency ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is to examine the relationship between earnings management and the efficiency of French firms’ investments. It also investigates the moderating effect of board of directors’ features on this relation.Design/methodology/approachThis study is based on a sample of French listed companies from 2011 to 2015, i.e. 435 firm-year observations. The authors use the instrumental variable method based on 2SLS models.FindingsThe authors show that there is a negative relationship between earnings management and investment efficiency. This finding supports the theoretical perspective of the agency theory, as the propensity of firms to engage in earnings management practices is associated with high managerial opportunistic behavior and asymmetric information issues, leading to the problem of under and overinvestment. The findings also show that board size, independence and gender diversity are positively associated with investment efficiency. These board features moderate the relationship between earnings management and investment efficiency suggesting that earnings quality plays a more prominent role in guiding managers to choose the right investments when the corporate governance environment is strong.Research limitations/implicationsThe negative relationship between earnings management and investment efficiency suggests that firms with lower earnings quality are exposed to high information asymmetries. They are then more likely to deviate from their expected level of investments. In addition, the results highlight the importance of corporate financial transparency and board monitoring to reduce agency costs and ensure the efficiency of corporate investments, particularly in a setting where investors’ interests are poorly protected.Originality/valueThis paper is the first to the best of the authors’ knowledge to examine the effect of earnings management, a metric for earnings quality, on the corporate investment efficiency in France. Besides, they extend previous literature by investigating how board features are able to monitor managerial actions and decisions and therefore to moderate the effect of earnings management on investment efficiency.

scholarly journals Earnings management and corporate governance: an analysis based on the adoption of IFRS in Brazil

2021 ◽  
Vol 13 (2) ◽  
Author(s):  
Bruno Chacon Prata ◽  
Leonardo Flach
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Negative Relationship ◽  
Financial Reporting Standards ◽  
Panel Data Regression ◽  
Data Regression ◽  
Reference Form ◽  
Big Four

Purpose: This paper aims to analyze whether the adoption of the International Financial Reporting Standards (IFRS) strengthened the negative relationship among earnings management and  corporate governance best practices, which are: B3’s differentiated levels of corporate governance, the presence of a board of independent directors and whether the company is audited by a Big Four or not. Methodology: We applied panel data regression with a sample of 92 companies listed in B3 during the period 2002-2007, for the period prior to IFRS and 2010-2015, for the period after IFRS. Data were collected from the explanatory notes, company reference form and in the Economatica® database. In order to measure the dependent variable earnings management, we applied the model proposed by Dechow, Hutton, Kim and Sloan (2012). Results: Results show that when there is an independent administrative committee, the levels of earnings management are lower, and this relationship is driven by the IFRS adoption. We cannot affirm that companies at the highest levels of corporate governance and audited by a Big Four have a lower incidence of earnings management after the application of IFRS. Contributions of the Study: This paper contributes to a better understanding of how variables related to governance can influence the quality of accounting and financial information. It also contributes to the literature that investigates how IFRS can influence the quality of accounting information.

scholarly journals Responsabilidade social corporativa e o desempenho de mercado de empresas brasileiras

2020 ◽  
Vol 13 ◽  
pp. 1373-1391
Author(s):  
Larissa Degenhart ◽  
Mikaéli Da Silva Giordani ◽  
Ismael Alan Halberstadt ◽  
Cristiano Sausen Soares ◽  
Vinicius Costa da Silva Zonatto
Keyword(s):  
Decision Making ◽  
Corporate Social Responsibility ◽  
Quantitative Research ◽  
Market Performance ◽  
Market Value ◽  
Decision Making Process ◽  
Panel Data Regression ◽  
Data Regression ◽  
Corporate Social ◽  
The Relationship

Purpose – This research aimed to analyze the relationship between Corporate Social Responsibility (CSR) and the market performance of Brazilian companies.Design/methodology/approach – A descriptive, documentary and quantitative research was carried out using panel data regression. The analysis period covered 2010 to 2018 and the sample comprised 41 companies.Findings – The results revealed that investments in external CSR and the fact that companies are listed on the ISE index increase their market value. The CSR information of Brazilian companies aimed at investments made for a society helps to increase market performance.Research limitations/implications – It should be noted that the results cannot be generalized for all Brazilian companies. This research contributes to the accounting and CSR literature, by analyzing the benefits of CSR on companies' market performance.Practical implications – The findings assist investors in the decision-making process, as companies that have CSR actions have positive impacts on their value, operational efficiency and the ability to generate financial performance.Social implications – The results have social implications, as they reinforce the importance of companies investing in CSR, which can improve their market value and benefit society with practices aimed at social well-being.Originality/value – CSR was analyzed in several aspects in the accounting literature. However, the focus of the relationship between CSR and specifically market performance has been little explored in Brazil, a fact that denotes research value.

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