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Introduction to Corporate Environmental Responsibility, Accounting and Finance Read chapter Read first chapter

2021 | OriginalPaper | Chapter

11. Corporate Environmental Responsibility and Earnings Management

Authors : Panagiotis Dimitropoulos, Konstantinos Koronios

Published in: Corporate Environmental Responsibility, Accounting and Corporate Finance in the EU

Publisher: Springer International Publishing

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Abstract

The scope of this chapter is to shed further light on the impact of CER performance and its components on the EM behavior by utilizing a multi-country research setting and incorporating various sub-categories of environmental performance and earnings management metrics including accrual earnings manipulation, real activities manipulation and income smoothing, thus providing more thorough evidence in the existing literature regarding the impact of CER on the quality of accounting numbers. The empirical results verified evidence and arguments in the literature that CER performance improves the quality of published accounting information by mitigating earnings management behavior via accruals and real activities manipulation. This argument is corroborated after performing several sensitivity tests relating to the estimation of discretionary accruals, the functional form of the models and other robustness tests.

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Metadata
Title
Corporate Environmental Responsibility and Earnings Management
Authors
Panagiotis Dimitropoulos
Konstantinos Koronios
Copyright Year
2021
Book
Corporate Environmental Responsibility, Accounting and Corporate Finance in the EU

Print ISBN: 978-3-030-72772-7

Electronic ISBN: 978-3-030-72773-4

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-72773-4_11