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
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