How does ESG constrain corporate earnings management? Evidence from China

被引：11
|
作者：
Sun, Weizheng [1 ]
Chen, Shuning [2 ,3 ]
Jiao, Yuqing [1 ]
Feng, Xu [4 ]
机构：
[1] Capital Univ Econ & Business, Coll Business Adm, 121 Zhangjialukou, Beijing 100070, Peoples R China
[2] Zhongnan Univ Econ & Law, Sch Accounting, Zhongnan, Peoples R China
[3] Zhongnan Univ Econ & Law, Innovat & Talent Base Digital Technol & Finance, Wuhan 430073, Hubei, Peoples R China
[4] Tianjin Univ, Coll Management & Econ, 92 Weijin Rd, Tianjin 300072, Peoples R China
来源：
FINANCE RESEARCH LETTERS | 2024年 / 61卷
基金：
中国国家自然科学基金;
关键词：
ESG; Earnings management; Analyst coverage; Firm visibility; Managerial ownership; Managerial overconfidence; SOCIAL-RESPONSIBILITY; MANAGERIAL OWNERSHIP; ANALYST COVERAGE; INVESTMENT; REFLECTION; DISCLOSURE; QUALITY; FIRMS; REAL;
D O I：
10.1016/j.frl.2024.104983
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This paper explores whether and how ESG can constrain firms' earnings management behavior in China. We find that firms with higher ESG performance are less likely to engage in earnings management. Firm visibility and managerial ownership strengthen the ESG-EM negative relationship, while managerial overconfidence weakens it. To further reveal the underlying mechanism, we find that the constraining effect of ESG performance on earnings management is partially mediated by attracting more analysts. Different from the existing explanations of reducing information asymmetry and ethical perspective, this study sheds new light on the mechanism of ESG's regulating corporate opportunistic behavior in China.
引用
收藏
页数：13
相关论文
共 50 条
  • [1] Does earnings management constrain ESG performance? The role of corporate governance
    Yusuf Babatunde Adeneye
    Setareh Fasihi
    Ines Kammoun
    Khaldoon Albitar
    [J]. International Journal of Disclosure and Governance, 2024, 21 : 69 - 92
  • [2] Does earnings management constrain ESG performance? The role of corporate governance
    Adeneye, Yusuf Babatunde
    Fasihi, Setareh
    Kammoun, Ines
    Albitar, Khaldoon
    [J]. INTERNATIONAL JOURNAL OF DISCLOSURE AND GOVERNANCE, 2024, 21 (01) : 69 - 92
  • [3] ESG, ESG rating divergence and earnings management: Evidence from China
    Mao, Zhihong
    Wang, Siyang
    Lin, Yu-En
    [J]. CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, 2024, 31 (04) : 3328 - 3347
  • [4] Does Fintech Development Reduce Corporate Earnings Management? Evidence from China
    Zhan, Weiwei
    Jing, Hao
    [J]. SUSTAINABILITY, 2022, 14 (24)
  • [5] How does corporate ESG performance affect stock liquidity? Evidence from China
    Wang, Kai
    Li, Tingting
    San, Ziyao
    Gao, Hao
    [J]. PACIFIC-BASIN FINANCE JOURNAL, 2023, 80
  • [6] How does the bond market price corporate ESG engagement? Evidence from China✩
    Jiang, Zhiqian
    Xu, Yue
    Fang, Mei
    Tang, Ziling
    Tao, Chunhua
    [J]. ECONOMIC ANALYSIS AND POLICY, 2023, 78 : 1406 - 1423
  • [7] Does corporate ESG disclosure enhance investor relationship management? Evidence from China
    Liang, Xinye
    Cao, Peng
    [J]. ACCOUNTING AND FINANCE, 2024, 64 (02): : 2011 - 2035
  • [8] How does corporate ESG performance affect bond credit spreads: Empirical evidence from China
    Lian, Yonghui
    Ye, Tao
    Zhang, Yiyang
    Zhang, Lin
    [J]. INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2023, 85 : 352 - 371
  • [9] How does local debt expansion affect earnings management? Evidence from China
    Yu, Cong
    Hou, Linke
    Wang, Ran
    Liu, Haiyue
    Li, Feiyue
    [J]. APPLIED ECONOMICS LETTERS, 2024,
  • [10] Does corporate digital transformation restrain ESG decoupling? Evidence from China
    Chen, Xiangyu
    Wan, Peng
    Ma, Zhefeng
    Yang, Yu
    [J]. HUMANITIES & SOCIAL SCIENCES COMMUNICATIONS, 2024, 11 (01):
12345