DigitalUM :: Browsing by Subject "Extractive Industry"

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Open Access
The association between Corporate Social Responsibility and Earnings Quality: evidence from Extractive Industry
(2019) Tomas Siueia, Tito; Wang, Jianling
Building on the ethical theory to solve the research questions, we examine the relationship between Corpor- ate Social Responsibility Disclosure (CSRD) and Earnings Quality (EQ). Using 368 ﬁrm-year observations covering the 2010-2017 period. In so doing, we applied content analysis to assess the CSRD dimensions, and we applied discretionary accruals as a proxy of EQ activity. Based on panel data regression, we ﬁnd a signiﬁcant and negative relationship between CSRD and EQ in Mozambican extractive industry. Empirical evidence also shows that the inﬂuence of positive CSRD indicator (CSRD strengths scores) is much stronger than that negative CSRD indicator (CSRD concerns scores) in reducing earnings quality. These ﬁndings are consistent with the idea that the opportunistic managers use CSRD to reach their particular interest, sug- gesting that the managers are using CSRD as a strategic device to engage in earnings management (poorer earnings quality). The results are robust to alternative proxy measures of CSRD and earnings quality.