Corporate social responsibility and earnings management in U.S. banks

Grougiou, Vassiliki, Leventis, Stergios, Dedoulis, Emmanouil and Owusu-Ansah, Stephen (2014). Corporate social responsibility and earnings management in U.S. banks. Accounting Forum, 38 (3), pp. 155-169.

Abstract

Business decision making depends on financial reporting quality. In identifying the drivers of financial reporting quality, proxied by earnings management (EM), prior literature has drawn attention to the association between corporate EM practices and commitment to corporate social responsibility (CSR). Empirical evidence, however, provides inconclusive results regarding the direction of this association. Using simultaneous equations, we examine the bi-directional CSR-EM relationship in U.S. commercial banks. We demonstrate that, although banks that engage in EM practices are also actively involved in CSR, the reverse relationship is not significant. We provide implications for investors, analysts, business participants and regulators.

Publication DOI: https://doi.org/10.1016/j.accfor.2014.05.003
Divisions: Aston Business School > Accounting
Aston Business School
Additional Information: © 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Funding: European Union, Seventh Framework Programme (FP7-REGPOT-2012-2013-1) under Grant Agreement No. 316167.
Uncontrolled Keywords: banking institutions,corporate social responsibility,earnings management,ethics,Accounting,Finance
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2014-09
Authors: Grougiou, Vassiliki
Leventis, Stergios
Dedoulis, Emmanouil
Owusu-Ansah, Stephen

Export / Share Citation


Statistics

Additional statistics for this record