CSR disclosure and state ownership: implications for earnings management and market value

IF 3.2 Q1 BUSINESS, FINANCE Journal of Accounting in Emerging Economies Pub Date : 2023-06-15 DOI:10.1108/jaee-06-2022-0175
T. Garanina
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Abstract

PurposeThis paper explores the relationship between earnings management and firms' value through the moderating effect of the missing elements – corporate social responsibility (CSR) disclosure and state ownership in Russian companies. The main argument of the paper is that CSR disclosure can be used as a mitigating mechanism to weaken the negative relationship between earnings manipulation and market value. Additionally test whether state ownership is an important moderating factor in this relationship are conducted as state has always played an important role in the emerging Russian market.Design/methodology/approachThe hypotheses are tested on panel data for 223 publicly listed Russian firms for the period 2012–2018. A number of robustness tests are used to check the obtained results for consistency. Following previous research GMM method is employed to address endogeneity concerns.FindingsSupported by stakeholder theory, it is observed that firms that disclosed more CSR information experience a weaker negative relationship between earnings management and market value because investors and other stakeholders positively evaluate a positive CSR image. This negative effect of earnings management on market value is even weaker for state-owned companies as market participants appreciate involvement of state-owned companies in CSR activities and place greater expectations on these firms to be responsible without clear understanding whether these actions are “window dressing” for this type of companies or not.Originality/valueThe study results provide new insights into the relation between earnings management, firm's value, CSR disclosure and state ownership in emerging-market firms. The paper highlight the importance of considering country-specific factors, such as state ownership, while analysing the market reaction on CSR disclosure and earnings management since the institutional peculiarities may help to explain differences in the obtained results.
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企业社会责任披露与国有所有权:对盈余管理和市场价值的影响
目的通过俄罗斯企业社会责任披露和国家所有权这两个缺失要素的调节作用,探讨盈余管理与企业价值之间的关系。本文的主要论点是,企业社会责任披露可以作为一种缓解机制来削弱盈余操纵与市场价值之间的负面关系。此外,还测试了国家所有权是否是这种关系中的一个重要调节因素,因为国家在新兴的俄罗斯市场中一直发挥着重要作用。设计/方法论/方法这些假设在2012-2018年期间223家俄罗斯上市公司的面板数据上进行了测试。使用许多稳健性测试来检查所获得的结果的一致性。根据先前的研究,采用GMM方法来解决内生性问题。研究结果在利益相关者理论的支持下,发现披露更多企业社会责任信息的公司在盈余管理和市场价值之间的负向关系较弱,因为投资者和其他利益相关者积极评价积极的企业社会责任形象。盈余管理对市场价值的负面影响对国有公司来说更为微弱,因为市场参与者欣赏国有公司参与企业社会责任活动,并对这些公司的责任抱有更大的期望,而不清楚这些行为是否是这类公司的“粉饰”。原创性/价值研究结果为新兴市场企业的盈余管理、企业价值、企业社会责任披露和国家所有权之间的关系提供了新的见解。本文强调了在分析市场对企业社会责任披露和盈余管理的反应时,考虑国家所有权等特定国家因素的重要性,因为制度特点可能有助于解释所获得结果的差异。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
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