Research On The Relationship Between Corporate Social Responsibility And Earnings Management

Recent years,the economy of our country is developing very fast,and getting more and more close to the global economic integration.At the same time,the contact of the economic life and social life is more close.These changes are inseparable from the business activities.However,the rapid economic development is often accompanied with a variety of social unhealthy phenomenon at the same time,such as lack of morality,enterprise financial fraud,etc.Not only the investors,a various of people or representatives affected by the enterprise development begin to demand that firms must be responsible for them and maintain their benefit.“ Corporate Social Responsibility(CSR)“ is mentioned more and more.As the understanding of corporate social responsibility is deepened,and the improvement of corporate social responsibility,the lack of corporate social responsibility events began to be known by the public,such as enterprise fails to perform the social responsibility,provide false or whitewashed financial information,affected the investors’ investment decisions seriously.So far,scholars started to relate corporate social responsibility with management,many articles have proved that the performance of corporate social responsibility can well restrain earnings management behavior,maintain the benefit of the stakeholders.However,earnings management(EM)is opportunism behaviors of the manager’s abuse of accounting methods.It is harmful the benefit of stakeholders while good to the company.It is also related with imperfect Corporate governance(CG).Therefore,restraining earnings management behavior also need to perfect the corporate governance system.But the pursuit of the company benefit and maintain the benefit of stakeholders is a contradictory problem.How to balance therelationship between the two?Based on this,the article will examine the relationship between EM and CSR,and whether CG moderates the relationship between EM and CSR.Based on the principal-agent theory,the stakeholder theory and the impression management theory,using data of A-share listed companies between 2011and2015,using the moderation of CG,do an empirical test on CSR and EM,and whether CG moderates the relationship between CSR and EM by using the regression model.The results show that:firstly,a negative relationship exists between CSR and EM,ether AEM or REM.Moreover,that CSR-oriented firms are less likely to engage in REM than in AEM.Secondly,CG reduces the negative relationship between CSR and EM,ether AEM or REM.Thirdly,for CSR-oriented firms,CG can substitute REM for AEM.