Corporate social responsibility and its effect on earnings management: an empirical research on Spanish firms

Santos Jaén, José Manuel; Palacios Manzano, Mercedes; Gras Gil, Ester

Publication:
Corporate social responsibility and its effect on earnings management: an empirical research on Spanish firms

dc.contributor.author	Santos Jaén, José Manuel
dc.contributor.author	Palacios Manzano, Mercedes
dc.contributor.author	Gras Gil, Ester
dc.contributor.department	Economía Financiera y Contabilidad
dc.date.accessioned	2023-11-07T23:11:44Z
dc.date.available	2023-11-07T23:11:44Z
dc.date.issued	2021-08-29
dc.description.abstract	The ethics of financial reporting assumes a centre stage in the corporate world in the background of an emerging understanding of Corporate Social Responsibility (CSR). The purpose of this paper is to investigate whether the CSR orientation of a firm affects its reporting incentives, in terms of the accrual-based earnings management. The main argument is that CSR induces transparency and reduces the propensity towards the number of opportunities for earnings management. Using archival data from a panel sample of 100 most reputable Spanish firms between 2011 and 2015, we find a negative impact of CSR practices on earnings management. The findings demonstrate the socially responsible firms are inclined to foster long–term relationships with stakeholders rather than maximise their short-term profit. In this regard, providing quality earnings is closely connected to CSR activities, especially in that both aim to meet the needs of the stakeholders. Our findings have important implications for shareholders, investors and analysts who may consider CSR as an expression of ‘ethical’ investing and a possible reflection of the quality of financial reporting. These groups should be very cautious in relying on CSR information for Spanish firm's analysis, since CSR is found to have significant impact on earnings management.
dc.format	application/pdf	es_ES
dc.format.extent	18
dc.identifier.citation	Total quality management and business excellence, Vol. 32, 2021 Issue 7-8
dc.identifier.doi	https://doi.org/10.1080/14783363.2019.1652586
dc.identifier.issn	1478-3363 (Print)
dc.identifier.issn	1478-3371 (Online)
dc.identifier.uri	http://hdl.handle.net/10201/135449
dc.language	eng	es_ES
dc.publisher	Taylor & Francis Group
dc.relation	Sin financiación externa a la Universidad
dc.relation.isreferencedby	ED_IDENTRADA=1205
dc.relation.publisherversion	https://www.tandfonline.com/doi/abs/10.1080/14783363.2019.1652586
dc.rights	info:eu-repo/semantics/openAccess
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject	Earnings management
dc.subject	Corporate social responsibility
dc.subject	Spanish firms
dc.title	Corporate social responsibility and its effect on earnings management: an empirical research on Spanish firms	es_ES
dc.type	info:eu-repo/semantics/article	es_ES
dspace.entity.type	Publication	es
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