Investigating the relationship between corporate social responsibility and earnings managementevidence from Spain
- Ester Gras-Gil 1
- Mercedes Palacios Manzano 1
- Joaquín Hernández Fernández 1
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1
Universidad de Murcia
info
ISSN: 2340-9444, 2340-9436
Argitalpen urtea: 2016
Alea: 19
Zenbakia: 4
Orrialdeak: 289-299
Mota: Artikulua
Beste argitalpen batzuk: Business Research Quarterly
Laburpena
This article investigates the relationship between corporate social responsibility and earnings management. Using panel data methodology for a sample of Spanish non-financial companies between 2005 and 2012, we find a negative impact of corporate social responsibility practices on earnings management. Corporate social responsibility is related to ethical and moral issues concerning corporate decision-making. Engaging in socially responsible activities not only improves stakeholder satisfaction, but also has a positive effect on corporate reputation. The results show that corporate socialresponsibility practices may be an organizational device that leads to more effective use of resources, which then has a negative impact on earnings management practices.
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