Journal of Business Ethics

, Volume 104, Issue 4, pp 461–471

The Relationship Between Corporate Social Responsibility and Earnings Management: An Exploratory Study


  • Yongtao Hong
    • North Dakota State University
    • North Dakota State University

DOI: 10.1007/s10551-011-0921-y

Cite this article as:
Hong, Y. & Andersen, M.L. J Bus Ethics (2011) 104: 461. doi:10.1007/s10551-011-0921-y


In this article, we explore the relationship between corporate social responsibility (CSR) and earnings management (EM). Our CSR index, using KLD data, incorporates information from the following issue areas: the community, corporate governance, diversity, the product, employee relations, the environment, and human rights. Results show that more socially responsible firms have higher quality accruals and less activity-based EM, both of which impact financial reporting quality.


Accruals quality Corporate social responsibility Earnings management Ethics KLD database

Copyright information

© Springer Science+Business Media B.V. 2011