Research On Corporate Social Responsibility Disclosure From The Angle Of Earnings Management

According to the basic meaning of corporate social responsibility, corporationsshould perform the law, ethics and voluntary responsibility when they are carrying out theeconomic responsibility. In other words, not only should the corporations seek tomaximize the shareholders'value, but also they should consider the stakeholders'interests,such as the environment and society. With the development of the society, social responsibilitydisclosure has become to an important medium between the corporations andstakeholders, but there are lots of problems and the reasons and purposes of socialresponsibility disclosure are quite different. This paper studies from the angle of earningsmanagement. On the one hand, agents want to pursue self-interest, which is the deepest rootof earnings management, so they need to cover the earnings manipulation in order to safeguardenterprise reputation and their occupational safety. On the other hand, socialresponsibility disclosure is a effective "whitewash tool", which can satisfy the corporateadvertisement need and play a key role in maintaining enterprise reputation andoccupational safety in the mean time.This paper is consisted of three parts: theories foundation, current situation analysisand empirical test. In the first part, the paper introduces the research theoreticalfoundation of social responsibility disclosure, and analyzes the relationship betweenearnings management and social responsibility disclosure based on the consigning agencytheory of contract theory and signal theory on economics. In the second part, this paperdescribes the current situation of social responsibility disclosure in our country, especiallyanalyzes the China features mechanism of social responsibility disclosure. In the thirdpart, this paper researches on the inner relationship between earnings management and socialresponsibility disclosure, taking the 100 series "China academy of social responsibility ofthe enterprise development index" in the year 2008-2009 as object collect data, accrualsseparation as research method and CASS's scores as standard. Then the paper gives somesuggestions to improve the social responsibility disclosure.Research shows that earnings management and social responsibility disclosure arerelated to each other, and the degree of social responsibility disclosure will increase if theearnings management grows up. As the main part of earnings management, managementprobably like to use or waste stakeholders'resources to disclose the social responsibilityinformation, so that their occupational safety and economic interests will be maintainwith no or a very low cost. The social responsibility disclosure will be significantly affected by the government supervision and other strong external pressure, but the finalowner's enterprise properties and industry have no significant influence on its socialresponsibility performance, which is different from the previous research conclusion. Theconclusions above indicate that social responsibility disclosure in our country is just forprivate interests, and people have not really realize the essence and significance of socialresponsibility disclosure, so there is still a long way for us to cognitive and practice thesocial responsibility disclosure.