شواهدی از چین در مورد کیفیت درآمد و مسئولیت اجتماعی شرکت
Abstract
1- Introduction
2- Institutional background, theoretical framework, literature review, and research hypotheses
3- Research design
4- Empirical results
5- Endogeneity
6- Conclusions
References
Abstract
We examine the association between corporate social responsibility (CSR) and earnings quality using CSR ranking data from Rankins (RKS) and four measures of earnings quality. Using a sample of 2580 Chinese listed firms for fiscal years 2009–2015, with 14,807 firm-year observations, we find that CSR firms and those with higher CSR ratings are less likely to engage in earnings management than non-CSR firms and those with lower CSR ratings, and their earnings are more persistent and more accurately predict future cash flows from operations. State ownership and marketization moderate the relationship between CSR disclosures and earnings quality.
Introduction
The primary goal of business organizations has recently refocused from profit maximization to increasing shareholder wealth and protecting the interests of other stakeholders including society and the environment (Rezaee, Zhang, Dou, & Gao, 2016). The link between financial performance, including earnings quality, and corporate social responsibility (CSR) performance has been extensively examined in accounting and finance literature (Huang & Watson, 2015). Some research reports that firms focusing on CSR performance are less likely to engage in earnings management (Kim, Park, & Wier, 2012), experience better financial and market performance, and exhibit lower cost of capital (Dhaliwal, Li, Tsang, & Yang, 2011; Ghoul, Guedhami, Kwok, & Mishra, 2011; Goss & Roberts, 2011; Ng & Rezaee, 2015). Fatemi, Fooladi, and Tehranian (2015) document that in certain circumstances CSR expenditures contribute to firm valuation. Dechow, Sloan, and Zha (2014) argue that earnings are important to investors and that earnings quality and nonfinancial performance indicators, in addition to financial earnings, affect stock prices. Sharma (2013) argues that CSR achievement is more challenging for Asian companies than for their Western counterparts. However, CSR activities and related performance and disclosures have been gaining more attention in recent years in China (McGuinness, Vieito, & Wang, 2017). Motivated by the inconclusive results of CSR-related research in developed countries, we examine the association between CSR and earnings quality in a fast-developing market and economy, China. We focus on China for several reasons.