The Research On The Relationship Between Fulfill CSR And EM Of Listed Central SOEs

Our corporate social responsibility and earnings management activities started relatively late, are still in the stage of standardized and improved, as a key portion corporate financial management, they must be taken seriously. With the development of economy and society, although companies strive to practice social responsibility,standardize financial management practices, but there still exist the phenomenon that some companies cannot conscientiously fulfill their social responsibilities and earnings management behavior gradually “growing spread”, which severely restrict the long-term economic and social development as well as enterprises. Currently, there are lots of researches on both, but the effect of EM on CSR is rarely, especially under the effect of financial leverage, the correlation between CSR and EM are pending further explored.Based on the data of listed central SOEs, we explore the possible relationship between CSR and EM, which is of important guiding significance to promote the whole society and the national economy’s coordinated and sustainable development.Firstly, learn about the research findings on corporate social responsibility and earnings management and the correlation between both. Under the guidance of stakeholder theory, contract theory and asymmetric information theory, etc, research and analysis on the cause and status quo of the central corporation to practice social responsibility and earnings management, and analyzes the existing problems and the cause based on the status quo.Secondly, we proposed assumptions on the basis of theoretical study, and make a correlation and regression analysis on corporation social responsibility and earnings management based on the data of 83 central SOEs listed on the Shenzhen and Shanghai from 2010 to 2014. Research indicates: To some extent, enterprises actively fulfill social responsibility will inhibit earnings management; earnings management will weaken the extent of corporation social responsibility to fulfill; financial leverage can forward adjust the earnings management’s negative impact on corporation social responsibility.Finally, we put forward specific recommendations and solutions based on theresearch results, proposed to strengthen the external oversight mechanisms through a variety of means, corporate management consciously regulate their financial management behavior, strengthen the communication between enterprises and the internal and external parties and so on, expected to provide theoretical guidance for the listed central SOEs to do related practices.