Exploring the relationship between Earnings Management and Corporate Social Responsibility in India
Keywords:
Corporate Social Responsibility, Earning Management , Systematic Review, Corporate Social Responsibility (CSR), Earnings Management (EM), Discretionary accruals, Real earnings management, Earnings smoothing, Earnings persistence, Sustainability indexesAbstract
This study looks at how Corporate Social Responsibility (CSR) is related to Earnings Management (EM), which means how companies may manipulate their financial results. Many past studies have tried to examine this relationship, but their results are often confusing and contradictory.
The main reason for these mixed results is that researchers measure CSR and earnings management in different ways. Between 2008 and 2016, this article reviewed existing studies to understand these measurement methods better.
The study found that:
- CSR is measured using tools like sustainability indexes, analysis of company reports, or single indicators.
- Earnings management is measured using methods such as discretionary accruals, real earnings management, earnings smoothing, and earnings persistence.
Each method has its own limitations, and researchers’ personal judgment and choice of data can affect the results. Because of this, the relationship between CSR and earnings management may appear positive in some studies and negative in others. In the end, the article suggests better and more consistent measurement methods to reduce bias and improve the accuracy of future research.
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Additional references available at: https://www.diva-portal.org/smash/get/diva2:1680132/FULLTEXT01.pdf
