Open AccessBefore the Ink Is Dry: Does Sustainability Reduce Earnings Management? Theoretical Perspective
Author(s) -
Ahmad Alwadhan,
Suzan Abed
Publication year - 2021
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v11i3.18888
Subject(s) - sustainability , perspective (graphical) , social sustainability , earnings , sustainability organizations , business , earnings management , accounting , field (mathematics) , balance (ability) , environmental economics , economics , environmental resource management , psychology , computer science , ecology , mathematics , artificial intelligence , neuroscience , pure mathematics , biology
This paper reviews the field of sustainability to develop insights into earnings management studies and outline future research opportunities. We find that most previous studies use integrated reports measured by three dimensions of social, economic and environmental sustainability. These three dimensions are interrelated and communicate with each other to formulate the definition of sustainability. And the sustainability report should provide a balanced disclosure of sustainability performance, including both positive and negative contribution. This paper offers an insightful analysis into sustainability disclosure to support the analysis of IR benefits to balance the current literature that overlooks the benefits of IR.