Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India

IF 3.6 Q1 BUSINESS, FINANCE
Manish K. Bansal, Vivek Kumar
{"title":"Forcing responsibility? Examining earnings management induced by mandatory corporate social responsibility: evidence from India","authors":"Manish K. Bansal, Vivek Kumar","doi":"10.1108/raf-06-2020-0151","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis study aims to investigate the impact of mandatory corporate social responsibility (CSR) spending legislation on the earnings management strategies of firms.\n\n\nDesign/methodology/approach\nThe authors use panel data regression models to analyze the data for this study. This study covers the post-legislation period, which spans over five years from the financial year ending March 2015 to the financial year ending March 2019.\n\n\nFindings\nThe results show that firms manipulate accounting measures to avoid breaching the cut-off criteria for mandatory CSR. In particular, the results show that firms operating around the operating revenue threshold misclassify operating revenue as non-operating revenue. In contrast, firms operating around the net worth and net profit thresholds do downward real and accrual earnings management. These results are consistent with several robustness measures.\n\n\nOriginality/value\nTo the best of the authors’ knowledge, this is the first study that examines the impact of mandatory CSR spending on earnings management.\n","PeriodicalId":21152,"journal":{"name":"Review of Accounting and Finance","volume":" ","pages":""},"PeriodicalIF":3.6000,"publicationDate":"2021-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"34","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Accounting and Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/raf-06-2020-0151","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 34

Abstract

Purpose This study aims to investigate the impact of mandatory corporate social responsibility (CSR) spending legislation on the earnings management strategies of firms. Design/methodology/approach The authors use panel data regression models to analyze the data for this study. This study covers the post-legislation period, which spans over five years from the financial year ending March 2015 to the financial year ending March 2019. Findings The results show that firms manipulate accounting measures to avoid breaching the cut-off criteria for mandatory CSR. In particular, the results show that firms operating around the operating revenue threshold misclassify operating revenue as non-operating revenue. In contrast, firms operating around the net worth and net profit thresholds do downward real and accrual earnings management. These results are consistent with several robustness measures. Originality/value To the best of the authors’ knowledge, this is the first study that examines the impact of mandatory CSR spending on earnings management.
强迫责任?强制性企业社会责任引发的盈余管理研究——来自印度的证据
目的本研究旨在探讨强制性企业社会责任支出立法对企业盈余管理策略的影响。设计/方法/方法作者使用面板数据回归模型来分析本研究的数据。这项研究涵盖了立法后的时期,即从截至2015年3月的财政年度到截至2019年3月的财政年度的五年多时间。结果表明,企业操纵会计措施以避免违反强制性企业社会责任的截止标准。特别是,结果表明,在营业收入阈值附近运营的公司将营业收入错误地分类为非营业收入。相比之下,在净资产和净利润阈值附近运营的公司会降低实际和应计盈余管理。这些结果与几个稳健性措施一致。原创性/价值据作者所知,这是第一次研究强制性企业社会责任支出对盈余管理的影响。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信