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
  • [21] Corporate earnings management strategy under environmental regulation: Evidence from China
    Zhang, Jintao
    Su, Taoyong
    Meng, Li
    [J]. INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2024, 90 : 154 - 166
  • [22] Corporate social responsibility, CEO characteristics, and earnings management: Evidence from China
    Erraja, Chayma
    Ying, Qu
    Khalil, Hassan
    [J]. BUSINESS AND SOCIETY REVIEW, 2024, 129 (02) : 313 - 345
  • [23] Earnings management, audit adjustments, and the financing of corporate acquisitions: Evidence from China
    Lennox, Clive
    Wang, Zi-Tian
    Wu, Xi
    [J]. JOURNAL OF ACCOUNTING & ECONOMICS, 2018, 65 (01): : 21 - 40
  • [24] Industrial robot use and corporate real earnings management: Evidence from China
    Teng, Huiyang
    Li, Xiaoshuo
    Liu, Yuyan
    [J]. FINANCE RESEARCH LETTERS, 2024, 69
  • [25] ESG performance and corporate fraudulence: Evidence from China
    Su, Fei
    Guan, Mengyao
    Liu, Yujie
    Liu, Jia
    [J]. INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS, 2024, 93
  • [26] Digital transformation and corporate ESG: Evidence from China
    Zhao, Xiaoxia
    Cai, Lianghui
    [J]. FINANCE RESEARCH LETTERS, 2023, 58
  • [27] Does Social Trust Mitigate Earnings Management? Evidence from China
    Chen, Shihua
    Cai, Wanying
    Jebran, Khalil
    [J]. EMERGING MARKETS FINANCE AND TRADE, 2021, 57 (10) : 2995 - 3016
  • [28] Does air pollution affect earnings management? Evidence from China
    Jiang, Dequan
    Li, Weiping
    Shen, Yongjian
    Yu, Shuangli
    [J]. PACIFIC-BASIN FINANCE JOURNAL, 2022, 72
  • [29] Does corporate internationalization affect analysts' ' earnings forecast bias? Evidence from China
    Wang, Linjiang
    Zhang, Guiling
    Lou, Xu
    Guo, Fei
    [J]. RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE, 2024, 72
  • [30] How Does Corporate ESG Management Affect Consumers' Brand Choice?
    Lee, Hyuck Jin
    Rhee, Tae-hwan
    [J]. SUSTAINABILITY, 2023, 15 (08)
12345