Corporate social responsibility and earnings management in U.S. banks

Vassiliki Grougiou; Stergios Leventis; Emmanouil Dedoulis; Stephen Owusu-Ansah

doi:10.1016/j.accfor.2014.05.003

Corporate social responsibility and earnings management in U.S. banks

Vassiliki Grougiou^*, Stergios Leventis, Emmanouil Dedoulis, Stephen Owusu-Ansah

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

Business decision making depends on financial reporting quality. In identifying the drivers of financial reporting quality, proxied by earnings management (EM), prior literature has drawn attention to the association between corporate EM practices and commitment to corporate social responsibility (CSR). Empirical evidence, however, provides inconclusive results regarding the direction of this association. Using simultaneous equations, we examine the bi-directional CSR-EM relationship in U.S. commercial banks. We demonstrate that, although banks that engage in EM practices are also actively involved in CSR, the reverse relationship is not significant. We provide implications for investors, analysts, business participants and regulators.

Original language	English
Pages (from-to)	155-169
Number of pages	15
Journal	Accounting Forum
Volume	38
Issue number	3
Early online date	14 Jun 2014
DOIs	https://doi.org/10.1016/j.accfor.2014.05.003
Publication status	Published - Sept 2014

Bibliographical note

© 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Funding: European Union, Seventh Framework Programme (FP7-REGPOT-2012-2013-1) under Grant Agreement No. 316167.

Keywords

banking institutions
corporate social responsibility
earnings management
ethics

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10.1016/j.accfor.2014.05.003

Corporate social responsibility and earnings management in US banks
© 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Accepted author manuscript, 326 KBLicence: CC BY-NC-ND 3.0

Cite this

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N1 - © 2014, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Funding: European Union, Seventh Framework Programme (FP7-REGPOT-2012-2013-1) under Grant Agreement No. 316167.

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Corporate social responsibility and earnings management in U.S. banks

Abstract

Bibliographical note

Keywords

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