The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry

Chinese firms need to face increasing issues about corporate social responsibility (CSR). And due to rising economic impact from Chinese firms, global investors may suffer from scandals like earnings management (EM) and other irresponsible corporate behaviors, paying more attention to firms’ CSR and...

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Main Author: Li, Jia-Ru
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2022
Subjects:
Online Access:https://eprints.nottingham.ac.uk/67710/
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author Li, Jia-Ru
author_facet Li, Jia-Ru
author_sort Li, Jia-Ru
building Nottingham Research Data Repository
collection Online Access
description Chinese firms need to face increasing issues about corporate social responsibility (CSR). And due to rising economic impact from Chinese firms, global investors may suffer from scandals like earnings management (EM) and other irresponsible corporate behaviors, paying more attention to firms’ CSR and EM. This paper investigates how CSR is associated with EM. Inspired by the findings that CSR affects EM differently in various industries (Yip, Van Staden and Cahan, 2011), this paper selects Chinese listed manufacturing firms as samples and collect their data from 2013 to 2019 in order to examine how CSR affect firms’ earnings smoothing and earnings aggressiveness. The findings show that CSR negatively affect firms’ earnings smoothing, however, the relationship is only weakly significant. And there is no significant relationship between CSR and earnings aggressiveness. Additionally, firms’ profitability has a significant negative effect on earnings smoothing, while has a significant positive effect on earnings aggressiveness. And firms’ leverage may drive earnings smoothing and lager firms have higher level of earnings aggressiveness.
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spelling nottingham-677102023-04-25T14:15:01Z https://eprints.nottingham.ac.uk/67710/ The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry Li, Jia-Ru Chinese firms need to face increasing issues about corporate social responsibility (CSR). And due to rising economic impact from Chinese firms, global investors may suffer from scandals like earnings management (EM) and other irresponsible corporate behaviors, paying more attention to firms’ CSR and EM. This paper investigates how CSR is associated with EM. Inspired by the findings that CSR affects EM differently in various industries (Yip, Van Staden and Cahan, 2011), this paper selects Chinese listed manufacturing firms as samples and collect their data from 2013 to 2019 in order to examine how CSR affect firms’ earnings smoothing and earnings aggressiveness. The findings show that CSR negatively affect firms’ earnings smoothing, however, the relationship is only weakly significant. And there is no significant relationship between CSR and earnings aggressiveness. Additionally, firms’ profitability has a significant negative effect on earnings smoothing, while has a significant positive effect on earnings aggressiveness. And firms’ leverage may drive earnings smoothing and lager firms have higher level of earnings aggressiveness. 2022-03-10 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/67710/1/20224372_BUSI4153_2021_22.pdf Li, Jia-Ru (2022) The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry. [Dissertation (University of Nottingham only)] CSR earnings management earnings smoothing earnings aggressiveness Chinese market manufacturing industry
spellingShingle CSR
earnings management
earnings smoothing
earnings aggressiveness
Chinese market
manufacturing industry
Li, Jia-Ru
The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry
title The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry
title_full The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry
title_fullStr The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry
title_full_unstemmed The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry
title_short The Effect of Corporate Social Responsibility on Earnings Management: Evidence from Chinese Manufacturing Industry
title_sort effect of corporate social responsibility on earnings management: evidence from chinese manufacturing industry
topic CSR
earnings management
earnings smoothing
earnings aggressiveness
Chinese market
manufacturing industry
url https://eprints.nottingham.ac.uk/67710/