Corporate Social Responsibility, Shareholding Structure And Earnings Management

Earnings management in listed companies have become increasingly prominent issue in recent years. Artificially manipulated profit leads to distortion of the report that seriously damaged the interests of stakeholders.Company attaches great importance to the stakeholders is an expression of its corporate social responsibility.Numerous studies and the fact show that corporate social responsibility have a huge impact on the sustainable development of enterprises and even on the regional economy.To coordinate development with China’s economic and environment, enterprises should fulfill social responsibility. Get to know the relationship between the corporate social responsibility and earnings management has important theoretical and practical significance for enhancing corporate governance and improving the capital market order.Firstly, I introduce the research background and current status of China’s social responsibility disclosure; Secondly, I summarize related literature on corporate social responsibility and earnings management;Thirdly,I collect corporates’financial data,these corporates are all included in the2009-2012CSR rating report that Rankins CSR Ratings released;after that I exam the hypotheses with STATA12.0. Finally, I put forward some policy suggestions based on the conclusions.The conclusions:(1) There is a negative relationship between CSR and EM.(2) Compared with the companies which were state mandated to publish CSR reports, there is stronger negative correlation bewteen CSR and EM in the companies that release CSR reports on their own initiative.(3) The negative correlation bewteen CSR and EM are weakened in the firms with too high ownership concentration.