The relationship between earnings management and corporate social responsibility: The moderating effect of corporate life cycle stages

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Issue Date
2023-07-10
Language
en
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Abstract
This study investigates the impact of corporate social responsibility (CSR) on earnings management (EM), focusing on the moderating effect of the corporate life cycle. A sample of 497 listed companies from the US and European markets across eight industries from 2011 to 2021 is utilized for multiple regression analyses. Findings reveal that CSR has a stronger adverse effect on real EM than accrual EM and the direct association between real EM and accrual EM is identified. Interestingly, the results indicate that the negative relationship between CSR and EM is reversed during the introductory stage of the corporate life cycle. Overall, this study contributes to the research field on how CSR impacts EM and highlights the importance of considering the corporate life cycle as a moderating factor in this relationship
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Faculteit der Managementwetenschappen
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