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The relationship between corporate social performance and earnings management
Author(s) -
Gargouri Rim Makni,
Shabou Ridha,
Francoeur Claude
Publication year - 2010
Publication title -
canadian journal of administrative sciences / revue canadienne des sciences de l'administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 48
eISSN - 1936-4490
pISSN - 0825-0383
DOI - 10.1002/cjas.178
Subject(s) - earnings management , earnings , sample (material) , accounting , business , corporate social responsibility , association (psychology) , economics , psychology , public relations , political science , chemistry , chromatography , psychotherapist
This study assesses the relationship between corporate social performance (CSP) and earnings management. Based on a sample of 109 Canadian companies drawn from the Michael Jantzi Research Associates – Canadian Social Investment Database for the years 2004 and 2005, our findings corroborate the multiple objectives hypothesis suggesting that the level of CSP is positively associated with earnings management. Using individual measures of CSP, we find a positive association between firm's CSP ratings related to environment and employees, and the earnings management activities. Copyright © 2010 ASAC. Published by John Wiley & Sons, Ltd.