The Relationship between Corporate Social Responsibility and Earnings Management: Empirical Evidence from the U.S.

Authors : Seyfullah SELİMEFENDİGİL, Mehtap ÖNER

Pages : 106-127

Doi:10.18074/ckuiibfd.1146222

View : 15 | Download : 6

Publication Date : 2022-12-26

Article Type : Research Paper

Abstract :The purpose of this study is to reveal the nexus between Earnings Management insert ignore into journalissuearticles values(EM); and Corporate Social Responsibility insert ignore into journalissuearticles values(CSR); as well as comparing the earnings management estimation models. Using Dechow and Dichev’s insert ignore into journalissuearticles values(2002); and Kothari, Leone, and Wasley’s insert ignore into journalissuearticles values(2005); models; in this study abnormal accruals are estimated and utilized as a sign of earnings quality. This study utilized data from 26 non-financial U.S. companies for the period between 2011 and 2020. The findings reveal that the Dechow and Dichev’s insert ignore into journalissuearticles values(2002); model is more strongly pronounced than Kothari, Leone, and Wasley’s insert ignore into journalissuearticles values(2005); model in estimating accruals EM. Furthermore, no significant relationship has been documented between EM and CSR. With respect to the control variables, it is found that audit-tenure, leverage, and cash flows from operations have an inverse association with EM whereas return on assets has a positive association. Finally, in this study no relationship is documented between firm size and EM.
Keywords : Kurumsal Sosyal Sorumluluk, Kazanç Yönetimi, İhtiyari Tahakkuklar, Corporate Social Responsibility, Earnings Management, Discretionary Accruals