Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy?
Managers could opportunistically misuse corporate social responsibility (CSR) to obfuscate earnings management (EM) by reporting more CSR activities that eventually accomplished stakeholders’ advocacy as their demands on CSR are satisfied. Likewise, sensitive industries have a higher commitment to...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2022
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| Online Access: | http://journalarticle.ukm.my/19549/ http://journalarticle.ukm.my/19549/1/49899-187528-1-PB.pdf |
| _version_ | 1848814871791009792 |
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| author | Nor Atikah Shafai, Azlan Amran, Yuvaraj Ganesan, |
| author_facet | Nor Atikah Shafai, Azlan Amran, Yuvaraj Ganesan, |
| author_sort | Nor Atikah Shafai, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Managers could opportunistically misuse corporate social responsibility (CSR) to obfuscate earnings
management (EM) by reporting more CSR activities that eventually accomplished stakeholders’ advocacy as their
demands on CSR are satisfied. Likewise, sensitive industries have a higher commitment to CSR to appease their
stakeholders’ adverse reactions to the nature of their business. This study examines the relationship between EM
and sensitive industries on CSR (proxied by the quality of CSR disclosure) and the moderating role of sensitive
industries in the relationship between EM and CSR. Employing multiple regression analysis on Malaysian public
listed companies for the year 2016, this study finds an insignificant association between EM and CSR, a positive
association between sensitive industries companies and CSR and sensitive industries moderate the relationship
between EM and CSR. This study offers practical implications for companies to strengthen their corporate
governance mechanisms and for investors to cautiously evaluate the companies’ ethics. |
| first_indexed | 2025-11-15T00:40:58Z |
| format | Article |
| id | oai:generic.eprints.org:19549 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:40:58Z |
| publishDate | 2022 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:195492022-09-01T07:34:01Z http://journalarticle.ukm.my/19549/ Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? Nor Atikah Shafai, Azlan Amran, Yuvaraj Ganesan, Managers could opportunistically misuse corporate social responsibility (CSR) to obfuscate earnings management (EM) by reporting more CSR activities that eventually accomplished stakeholders’ advocacy as their demands on CSR are satisfied. Likewise, sensitive industries have a higher commitment to CSR to appease their stakeholders’ adverse reactions to the nature of their business. This study examines the relationship between EM and sensitive industries on CSR (proxied by the quality of CSR disclosure) and the moderating role of sensitive industries in the relationship between EM and CSR. Employing multiple regression analysis on Malaysian public listed companies for the year 2016, this study finds an insignificant association between EM and CSR, a positive association between sensitive industries companies and CSR and sensitive industries moderate the relationship between EM and CSR. This study offers practical implications for companies to strengthen their corporate governance mechanisms and for investors to cautiously evaluate the companies’ ethics. Penerbit Universiti Kebangsaan Malaysia 2022 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/19549/1/49899-187528-1-PB.pdf Nor Atikah Shafai, and Azlan Amran, and Yuvaraj Ganesan, (2022) Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? Jurnal Pengurusan, 64 . pp. 1-16. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1530 |
| spellingShingle | Nor Atikah Shafai, Azlan Amran, Yuvaraj Ganesan, Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? |
| title | Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? |
| title_full | Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? |
| title_fullStr | Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? |
| title_full_unstemmed | Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? |
| title_short | Corporate social responsibility, earnings management and industry type : does CSR reinforce entrenchment strategy? |
| title_sort | corporate social responsibility, earnings management and industry type : does csr reinforce entrenchment strategy? |
| url | http://journalarticle.ukm.my/19549/ http://journalarticle.ukm.my/19549/ http://journalarticle.ukm.my/19549/1/49899-187528-1-PB.pdf |