Accounting Commons^™

An Analysis Of Corporate Social Responsibility And Real Earnings Management, Rachel Brassine

Theses, Dissertations and Capstones

Real earnings management (REM) is costly in the form of intense loan restrictions, increased interest expense, and public scrutiny. Nevertheless, companies still practice REM. Based on agency and stakeholder theories, this research predicts that as a company’s CSR score increases, REM will decrease, and this association will become more negative when a critical mass of females on the board of directors exists and when a board-level CSR committee is present. This study also predicts that when a company offers an executive incentive plan based on CSR metrics, REM will decrease, and the relationship will become more negative with a critical …

Does Corporate Social Responsibility Disclosure Increase The Stock Price Crash Risk? Evidence From Indonesia, Raden Roro Widya Ningtyas Soeprajitno, Zephyra Violetta Setiawan, Ainun Na’Im

Jurnal Akuntansi dan Keuangan Indonesia

Indonesia fully supports efforts to disclose corporate social responsibility (CSR) to increase awareness of issues regarding the environment globally, as stated in the Sustainable Development Goals (SDGs). The connection between the disclosure of corporate social responsibility and the stock price crash risk is examined in this study. Furthermore, we analyse and check robustness and endogeneity issues to avoid variable bias selections. The study uses as its sample companies that are listed on the Indonesia Stock Exchange and follow the Global Reporting Initiative (GRI) for corporate social responsibility. It is found that companies with corporate social responsibility disclosures have a positive …

Prosocial Ceos, Corporate Policies, And Firm Value, Mei Feng, Weili Ge, Zhejia Ling, Wei Ting Loh

Research Collection School Of Accountancy

This paper examines how chief executive officers' (CEOs') prosocial tendency influences corporate policies and firm value. We use individuals' involvement with charitable organizations as a proxy for prosocial tendency. We find that, compared to firms with non-prosocial CEOs, firms with prosocial CEOs have lower executive subordinate turnover, implement more employee-friendly policies, experience higher customer satisfaction, and engage in more socially responsible activities. We also find that firms with prosocial CEOs have higher value and lower risk, partly due to the corporate policies adopted by prosocial CEOs. These results are corroborated when we compare changes in corporate policies and firm value …

Cross-Country Evidence On The Role Of Independent Media In Constraining Corporate Tax Aggressiveness, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of firms from 32 countries, we study the relation between media independence and corporate tax aggressiveness. We measure media independence by the extent of private ownership and competition in the media industry. Using an indicator variable for tax aggressiveness when the firm’s corporate tax avoidance measure is within the top quartile of each country-industry combination, we find strong evidence that media independence is associated with a lower likelihood of tax aggressiveness, after controlling for other institutional determinants, including home-country tax system characteristics. We also find that the effect of media independence is more pronounced when the …

Essays In Corporate Responsibility And Finance, Mert Demir

Dissertations, Theses, and Capstone Projects

This dissertation consists of three chapters:

Chapter 1: The Effects of Corporate Social Performance and Social Norms on Market Valuation of Nonfinancial Disclosures Using a novel measure of the quality of corporate social responsibility (CSR) disclosures by global companies, this paper analyzes how CSR report quality affects firm value when mediating roles of social pressure and CSR performance are considered. I find that firms operating in socially controversial industries enjoy higher valuations when they issue high-quality CSR reports. I also find that for firms with poor CSR performance, higher-quality CSR disclosure is associated with a decline in firm value, while …

The Assurance Market Of Sustainability Reports: What Do Accounting Firms Do?, Belen Fernandez-Feijoo, Silvia Romero, Silvia Ruiz

Department of Accounting and Finance Faculty Scholarship and Creative Works

The assurance of sustainability reports is a relatively new service offered by different providers such as accounting firms and consultants. The percentage of sustainability reports assured and the weight of the four largest accounting firms (Deloitte, EY, KPMG and PWC) in this new market are evolving in time. The purpose of this paper is to contribute to a better understanding of the role each one of the four major accounting firms (Big4) play in this assurance market. Using a generalized linear mixed model in an international sample, our results confirm that each Big4 accounting firm leverages its network of financial …

Commitment To Corporate Social Responsibility Measured Through Global Reporting Initiative Reporting: Factors Affecting The Behavior Of Companies, Belen Fernandez-Feijoo, Silvia Romero, Silvia Ruiz

Department of Accounting and Finance Faculty Scholarship and Creative Works

The increasing importance of Corporate social responsibility to entrepreneurial policies has made it a leading topic in the literature. The strategic integration of Corporate social responsibility in the business core implies the communication between a company and its stakeholders. Sustainability reports are recognized worldwide as a tool that companies use to communicate their socially responsible behavior. The way companies communicate through their reports indicates their level of commitment to Corporate social responsibility. The objective of this paper is to analyze companies' behavior towards Corporate social responsibility based on their disclosure practices. We define four possible types of behavior: Novice, Cautious, …

Women On Boards: Do They Affect Sustainability Reporting?, Belen Fernandez-Feijoo, Silvia Romero, Silvia Ruiz-Blanco

Department of Accounting and Finance Faculty Scholarship and Creative Works

Sustainable reports are the basic tool used to reflect and communicate stakeholder dialogue. Therefore, sustainability reporting has become a key element for strategic management. Companies' strategies are defined and developed by their boards of directors. This study explores the relationship between sustainability reporting and the existence of at least three women on the board of directors. Our results show that in countries with a higher proportion of boards of directors with at least three women, the levels of CSR reporting are higher. We also find that countries with higher gender equality have more companies with boards of directors with at …

Effect Of Stakeholders' Pressure On Transparency Of Sustainability Reports Within The Gri Framework, Belen Fernandez-Feijoo, Silvia Romero, Silvia Ruiz

Department of Accounting and Finance Faculty Scholarship and Creative Works

Transparency is a quality of corporate social responsibility communication that enhances the relationship between the investors and the company. The objective of this paper is to analyze if the transparency of the sustainability reports is affected by the relationship of companies in different industries with their stakeholders. If this were the case, it would indicate that the pressure of significant stakeholders determines the required level of transparency of the reports. We find that the pressure of some groups of stakeholders (customers, clients, employees, and environment) improves the quality of transparency of the reports. We extend previous research by studying the …