The distance between discourse and practice: an analysis of social responsibility and disclosure vis-a-vis earnings management
DOI:
https://doi.org/10.21710/rch.v27i0.550Keywords:
Social Responsibility, Earnings Management, Social Disclosure, Corporate Reputation.Abstract
The present research aims to evaluate if a Brazilian companies with higher level of Social Disclosure presents a lower degree of earnings management. The paper also investigated whether socially responsible certified companies present the same relation between Social Disclosure and earnings management. In order to achieve this goal, 87 companies included in B3's Corporate Sustainability Index portfolio and non-participating companies were analyzed from 2010 to 2017.The methodology is qualitative and quantitative, according to Günther (2006). The Social Disclosure levels were evaluated using an index that measures the transparency levels of investments in social projects based on information contained in social reports. The Kang and Sivaramakrishnan (1995) model was used to measure earnings management levels. Results indicate a positive level of Social Disclosure related to earnings management. On the other hand, companies classified as socially responsible, located on the Corporate Sustainability Index portfolio, had a negative relation with earnings management, without statistical significance.
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