The Research On The Relationship Between Corporate Social Responsibility And Earnings’ Quality

Recently, so many earnings management behaviors happened by the listed companies which have harmed the shareholder’s and other related people’s benefits seriously. Based on the study of Chinese manufacturing listed companies, this thesis discusses the potential correlation between corporate social responsibility (CSR) and earnings’quality (EQ) in the level of accounting. It is not only beneficial to obtain benefits between shareholders’and stakeholders’ fairness, but also to regulate and supervise corporate’s social responsibility, thereby improve the impartiality and transparency of financial information.Firstly this thesis draw a lot of documents from domestic and international about CSR and EQ, drawing on the experience which is how to quantify the variables of CSR and EQ:selecting the appropriate financial indicators to quantify CSR from the perspective of stakeholders and quantify EQ from earnings persistence and profitability. The long-term impact of corporate social responsibility for the quality of earnings being taken into account, this thesis selects financial data from 2010 to 2012 for analysis, which studies the influence of corporate social responsibility on the current quality of earnings and the effects of corporate social responsibility for the quality of future earnings. Then based on the assumptions built corresponding linear regression model, using SPSS 19.0 software for data analysis, it puts forward six hypothesis from the stable quality of earnings sustainability and profitability of corporate social responsibility in year 2010,2011, and 2012. According to empirical analysis, following results are obtained:firstly, corporate social responsibility for the current of sustainable earnings and profitability has a positive impact; secondly, the impact of corporate social responsibility for the stability of the current earnings sustainability and profitability possesses a continuing nature, but the magnitude of this effect is weakening gradually; thirdly, corporate social responsibility has a more significant influence to enhance the profitability of the business,but a weaker influence to the sustainable development of earnings.The results of this paper provides a theoretical guarantee for the enterprises to actively fulfill their social responsibility, and improves the corporate initiativity of performing corporate social responsibility. Finally, this paper raises relevant proposals for the government, enterprise itself and stakeholders in the conclusions and recommendations section.