Journal of Business Ethics

, Volume 104, Issue 4, pp 461–471

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

Article

Abstract

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.

Keywords

Accruals quality Corporate social responsibility Earnings management Ethics KLD database 

Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.North Dakota State UniversityFargoUSA

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