scholarly journals Does Corporate Social Responsibility Reduce Earnings Management? The Moderating Role of Corporate Governance and Ownership

2019 ◽  
Vol 23 (2) ◽  
pp. 45-55 ◽  
Author(s):  
Aymen Ajina ◽  
Faten Lakhal ◽  
Sabrine Ayed
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

The purpose of this paper is to investigate the relationship between corporate social responsibility and earnings management and the moderating effect of corporate governance and ownership structure on this relationship. Using panel data for a sample of French listed companies between 2010 and 2013, we find that CSR engagementconstrain earnings management practices suggesting that managers would comply with the ethical requirements and satisfy stakeholders’ interests. The results also show that the effect of CSR on earnings management is particularly stronger in more independent boards and with high institutional ownership structure. These corporate governance devices help mitigating managerial opportunistic behavior.

scholarly journals CORPORATE SOCIAL RESPONSIBILITY AND EARNINGS MANAGEMENT: THE ROLE OF CORPORATE GOVERNANCE

2019 ◽  
Vol 7 (5) ◽  
pp. 1338-1347
Author(s):  
Gemi Ruwanti ◽  
Grahita Chandrarin ◽  
Prihat Assih
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Firm Size ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

Purpose: The purpose of this paper is to examine the role of corporate governance in the relationship of Corporate Social Responsibility (CSR) and firm size to earnings management of manufacturing firms in Indonesia. Methodology: The study draws on data from 66 firms listed in Indonesian Stock Exchange from 2014 to 2017, using a multiple regression model. The present study examines the influence of CSR on earnings management, and the impact of corporate governance on the relationship between CSR and firm size with earnings management. Main Findings: The finding showed that the effect of CSR on earnings management was significant and positive. The study also finds a statistically significant negative relationship between firm size and earnings management. The evidence also shows the role of corporate governance in the relationship of CSR and firm size to earnings management is significant and negative, it means that when the firm has good corporate governance, the firms that allocate CSR funds are relatively large, then it will tend not to practice earnings management, likewise large firms with good corporate governance will tend not to do earnings management. Research limitations/implications: The present study does not include all possible other variables that influence earnings management. Further research might increase the scope of research objects by extending the study period and need to pay attention to the firm's macro factors or economic risk factors outside of financial performance so as to provide a more comprehensive picture of the results of the study. Originality/value: The study focuses on the role of corporate governance issues such as the independence and activity of the boards and their influence on earnings management. The subject analyses the possible impact of CSR and firms size-related earnings management that has received much attention from academic research, which has largely focused on studying the publications of corporate governance in Indonesia context and can be contributes thoughts about the importance of corporate social responsibility activities that are reported as a basis for consideration incorporate policy-making to further enhance corporate awareness in the social environment, as well as the importance of corporate governance to minimize earnings management practices.

The Relationship Between Corporate Governance and Corporate Social Responsibility Expenditure in Bangladesh: Moderating Role of Firm Value

2020 ◽  
Vol 13 (2) ◽  
pp. 190-209
Author(s):  
Md Sajjad Hosain
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Firm Value ◽  
Banking Sector ◽  
Gender Diversity ◽  
Annual Reports ◽  
Corporate Social ◽  
The Relationship

This article aims at identifying the relationship between corporate governance (CG) and corporate social responsibility expenditure (CSRE) for the Bangladeshi banking sector. CG has been considered as the single independent variable divided into three components: board size (BS), gender diversity (GD) and board members’ interrelationship (BMI), and CSRE has been considered as the dependent variable. Further, a single moderator—firm value (FV) as been employed in order to test the moderating influence. Annual reports from 2015 to 2019 (5 years) of 35 banking firms have been used as samples. The study utilized Pearson’s correlation coefficient in order to test the direct relationships and regression analysis to test the moderating effects. The analysis has revealed that BS and GD are positively associated with CSRE while BMI has a negative association with CSRE. Furthermore, has been revealed that FV can moderate all the direct relationships. The study is expected to aid researchers in further empirical investigation over this important issue and guide policymakers to obtain more representative outcomes to make constructive decisions regarding CG and CSRE that would, in turn, increase FV.

Corporate governance, corporate social responsibility and performance with the moderating role of board equity ownership: Evidence from Indonesia’s oil palm companies

2020 ◽  
Vol 7 (11) ◽  
pp. 1-15
Author(s):  
Asna Asna
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Oil Palm ◽  
Company Performance ◽  
Corporate Governance Mechanisms ◽  
Equity Ownership ◽  
Corporate Social ◽  
The Relationship

The Oil Palm Companies is one of the highest contributions towards Indonesia economic development. However, the company performance in the oil palm companies is far from expectation which is related to how they responsible on their shareholders as well as stakeholders. Thus, the study purpose is to examine the relations between corporate governance mechanisms, corporate social responsibility and board equity ownership on performance in Indonesia’s Oil Palm Companies. The findings highlight a positive relationship between board equity ownership, corporate social responsibility and company performance. Furthermore, the moderating role of board equity ownership has a significant positive on the relationship between independence director and company performance as well as corporate social responsibility. The relationship between female director and company performance shows the same result with the interaction of board equity ownership. Currently studies have found that corporate governance mechanisms, corporate social responsibility have significant effect on company performance. Nevertheless, this evidence showed that direct relationship between corporate governance, social responsibility and company performance have mix results. Admittedly, the indirect relationship revealed that board equity ownership contributes significant effect on the relations between corporate governance, social responsibility and company performance particularly in Indonesia’s oil palm companies. Based on the author knowledge, a few studies have been done in oil palm companies which it provides a prominent issue in corporate governance mechanism particularly on board equity ownership which majority is held by family member ownership. Keywords Corporate governance, social responsibility, board equity ownership, company performance

scholarly journals “The Power of Ethical Leadership”: The Influence of Corporate Social Responsibility on Creativity, the Mediating Function of Psychological Safety, and the Moderating Role of Ethical Leadership

2021 ◽  
Vol 18 (6) ◽  
pp. 2968
Author(s):  
Byung-Jik Kim ◽  
Min-Jik Kim ◽  
Tae-Hyun Kim
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Ethical Leadership ◽  
Psychological Safety ◽  
Underlying Mechanism ◽  
Time Lagged ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

A body of existing literature delves into how corporate social responsibility (CSR) affects employees’ cognition, emotion, and behavior within an organization. These previous studies, however, pay relatively little attention to the influence of CSR on levels of creativity in employees. Considering that creativity is closely related to innovative capability, which is critical for a firm to survive, the relationship between CSR and employees’ creativity and its elaborate underlying processes need further investigation. Based on a group creativity model, we argue that CSR may increase levels of creativity in employees through mediation of enhanced levels of psychological safety in employees. In addition, existing works on CSR have relatively underexplored the contextual role of leadership in translating CSR practices into employees’ attitudes, perceptions, and behaviors. Using three-wave time-lagged survey data from 311 employees in South Korea, we found that CSR enhances employees’ creativity via mediation of psychological safety. Additionally, ethical leadership positively moderates the relationship between CSR and psychological safety. Our findings suggest that psychological safety in employees functions as an important underlying mechanism to describe the CSR–employee creativity link. Furthermore, this paper emphasizes the importance of the moderating role of ethical leadership in the process of CSR activities.

scholarly journals CORPORATE SOCIAL RESPONSIBILITY DAN EARNINGS MANAGEMENT: MANAGERIAL ENTRENCHMENT SEBAGAI VARIABEL MODERASI

2021 ◽  
Vol 07 (01) ◽  
Author(s):  
Steven Khosasi ◽  
◽  
Rizky Eriandani ◽  
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Management Practices ◽  
Managerial Entrenchment ◽  
Share Ownership ◽  
Management Actions ◽  
Corporate Social ◽  
The Relationship

Abstrak: Penelitian ini bertujuan menguji pengaruh managerial entrenchment terhadap hubungan tanggung jawab sosial perusahaan (CSR) dengan praktik manajemen laba. Data yang digunakan adalah semua perusahaan sektor manufaktur yang terdaftar di BEI periode 2016-2018. Proksi yang digunakan untuk mengukur managerial entrenchment adalah kepemilikan saham CEO dan masa jabatan CEO. Pengolahan data menggunakan moderated regression analysis. Hasil penelitian yang diperoleh menyatakan bahwa tanggungjawab sosial perusahaan berpengaruh negatif terhadap manajemen laba, sedangkan masa jabatan CEO dan kepemilikan saham CEO tidak memberikan pengaruh terhadap hubungan tanggung jawab sosial perusahaan dengan manajemen laba. Selain itu, pada penelitian ini juga menemukan bahwa masa jabatan CEO memiliki pengaruh yang signifikan terhadap kesenjangan tanggung jawab sosial perusahaan. Penelitian ini memberikan implikasi bahwa walaupun managerial entrenchment tidak merusak hubungan CSR dan tindakan manajemen laba, namun managerial entrenchment menentukan jenis aktifitas CSR yang dilakukan perusahaan. Abstract: This study aims to examine the effect of managerial entrenchment on the relationship between corporate social responsibility (CSR) and earnings management practices. The data used are all manufacturing sector companies listed on the IDX for the 2016-2018 period. The proxies used to measure managerial entrenchment are CEO's share ownership and CEO's tenure. Data processing using moderated regression analysis. The results obtained indicate that corporate social responsibility harms earnings management. At the same time, the tenure of the CEO and CEO's share ownership does not affect the relationship between corporate social responsibility and earnings management. In addition, this study also found that CEO tenure has a significant influence on the corporate social responsibility gap. This study implies that although managerial entrenchment does not damage the relationship between CSR and earnings management actions, managerial entrenchment determines the company's types of CSR activities.

scholarly journals Tourism Corporate Social Responsibility Effects on Purchase Intention during Covid-19: Mediating Role of Trust and Moderating Role of Trust Propensity

2021 ◽  
Vol 4 (6) ◽  
Author(s):  
LIQUN W ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Purchase Intention ◽  
Ethical Responsibility ◽  
Mediating Role ◽  
Trust Propensity ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

Though the pyramid model of corporate social responsibility, the paper classified tourism corporate social responsibility into economic responsibility, legal responsibility, ethical responsibility, charitable responsibility and environmental responsibility. With the COVID-19 epidemic as the background, based on 250 questionnaire data, the paper proposed a structural equation model that explore the impact mechanism of tourism corporate social responsibility on tourist purchase intention during the COVID-19 epidemic. The mediation effect of trust was examined in the model. And the question whether trust propensity plays a moderating role was answered. The results of experimental studies revealed that: First, the economic responsibility, ethical responsibility and charitable responsibility have a significant positive effect on tourist purchase intention during the epidemic period. Second, trust plays a partial mediating role in the relationship between tourism corporate social responsibility and tourist purchase intention. Third, trust propensity has no moderating effect on the relationship between tourism corporate social responsibility and tourist purchase intention. Suggestions for tourism enterprises was put forwarded: except ensuring the quality of tourism products, enterprises should take corporate social responsibility into consideration of the long-term management decisions. Especially in the event of major events (COVID-19), it is more important to show the responsibility of enterprises.

scholarly journals The Influence of Governance and Ownership on CSR Practices in Romania

2019 ◽  
Vol 8 (3) ◽  
pp. 313 ◽  
Author(s):  
Cosmina Lelia Voinea ◽  
Cosmin Fratostiteanu ◽  
Bas Romein
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Economic Efficiency ◽  
Emerging Economies ◽  
Ownership Structure ◽  
Public Ownership ◽  
The Public ◽  
Corporate Social ◽  
The Relationship

Ownership structure represents the distribution of equity with regard to votes and capital but also by the identity of the equity owners. These structures are of major importance in corporate governance because they determine the incentives of managers and thereby the economic efficiency of the corporations they manage. This papers analyzes the relationship between governance, ownership structure and CSR practices among companies in Romania. The results of this study allows corporates and the public to formulate a well substantiated opinion on the way particular organizations carry out their businesses in Romania regarding CSR where CSR practices reflect culture and are partially county and ownership specific. The CSR practices implemented in Romania may not always reflect the societal views but rather the public ownership / government views, on what is thought to be important. Keywords: governance, ownership, emerging economies, Romania, corporate social responsibility, CSR practices

Do female and independent directors explain the two-way relationship between corporate social responsibility and earnings management of Chinese listed firms?

2019 ◽  
Vol 27 (3) ◽  
pp. 442-460 ◽  
Author(s):  
Muhammad Safdar Sial ◽  
Zheng Chunmei ◽  
Nguyen Vinh Khuong
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Emerging Market ◽  
Independent Directors ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social ◽  
Moderating Role

Purpose This study aims to explore the possibility of a two-way relationship between corporate social responsibility (CSR) and earnings management (accruals and real EM) with the moderating role of female and independent directors. Design/methodology/approach The authors use STATA to test the generalized method of moments on a sample of Chinese listed firms data over the period 2009-2015. The unbalanced sample obtained 3,481 observations from China stock market and accounting research database and CSR rating provided by Rankins. Findings The results indicate a significant negative relationship between two-way CSR and accrual-based EM. Moreover, female and independent directors moderate the two-way relationship between CSR and EM. Research limitations/implications The present study does not include all financial, insurance and investment firms to impact on CSR and EM. Further research might consist of family ownership to enhance the evidence for an emerging market. Originality/value This study primarily contributes to the literature on CSR, female and independent directors, and EM by providing evidence for the moderating role of female and independent directors on the two-way association between CSR and EM.

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