The Impact Of Corporate Social Responsibility On Real Earnings Management

Because of the quickly upgrading and transformation of our country’s economy,people think heavily on the performance of corporate social responsibility.Therefore,lately,the goal of corporate management is not only to maximize profits,but also to better fulfill social responsibilities.In reality,financial frauds are constantly being exposed,and earnings management behaviors are widespread.With the continuous revision of my country’s accounting policies and the strengthening of market supervision,the difficulty of manipulating corporate earnings management has gradually increased,so more concealed truths have begun earnings management.And true earnings management will influence the future cash flow of company,which will finally cause more serious damage in the long run to the company.Can the fulfillment of corporate social responsibility have a good impact on real earnings management? Nowadays,the academic community has still not solved this problem.Besides,existing studies have shown that internal and external governance mechanisms can regulate the impact of corporate social responsibility on earnings management,but few documents incorporate the regulatory effects of the two into the same framework for research.However,in the process of the impact of corporate social responsibility on real earnings management,two regulatory variables exist simultaneously in reality.The two regulatory variables will play a game role in regulating the impact of corporate social responsibility on real earnings management,thus affecting the regulatory role of the other party.Based on this,this article will explore the influence of corporate social responsibility on real earnings management and the co-regulatory role of analyst attention and corporate internal governance.The data of this article comes from A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2012 to 2018 to empirically test the impact of corporate social responsibility on real earnings management and the individual and joint regulatory effects of analyst attention and corporate internal governance,and distinguish the nature of property rights and companies The performance of social responsibility has been analyzed for heterogeneity.The empirical research in this paper found:(1)There is a negative correlation between corporate social responsibility and real earnings management.Through the analysis of heterogeneity,it is also found that the negative impact of corporate social responsibility on real earnings management is more obvious in non-state-owned enterprises and companies with lower corporate social responsibility scores;(2)Analysts are concerned about the strengthening of the negative impact of corporate social responsibility on real earnings management;(3)Corporate internal governance has also strengthened the negative impact of corporate social responsibility on real earnings management;(4)Analysts’ concerns and corporate internal governance are complementary in the process of strengthening the restraint of corporate social responsibility on real earnings management.Finally,this article proposes countermeasures and suggestions from four aspects:improving the quality of corporate social responsibility,strengthening analysts’ supervision of listed companies,improving internal governance mechanisms,and building a governance system that combines internal and external governance,with a view to reducing the level of real earnings management of listed companies.