Research On The Effect Of Earnings Management On Corporate Social Responsibility Under External Governance

CSR and its disclosed information are the proper meaning of modern corporate strategic management. In the era of social responsibility, CSR and its reasons for disclosure of complex and diverse, not only on the level of the enterprise itself moral reasons, but also may be due to the pressure of laws and regulations and other systems, and knowledge-based enterprises whitewash misconduct of motivation. To this end we need to explore what factors lead to the performance of CSR and disclosure of social responsibility information (CSRD). Some scholars have suggested that earnings management behavior may be one of the factors that affect the performance of CSR. However, the disclosure of CSR and CSRD are two different concepts. And no scholars have explored whether earnings management will affect the CSRD. In order to solve this problem, this paper attempts to explore whether CSRD will be affected by the impact of earnings management behavior? And is the external supervision mechanism to play a regulatory role in the impact?This paper analyzes the impact of earnings management on CSRD in our country from 2011 to 2014 in Shanghai and Shenzhen A shares listed companies as samples. It was found that the degree of earnings management and the level of social responsibility information disclosure were inverted "U" type relationship. It was found that the impact of earnings management on the level of s CSRD was inverted "U" type relationship.That is, when managers manage earnings did not reach a certain extent, they tend to use CSRD as a tool to cover up the whitewash opportunistic manipulation of its low profit level, And when it is make use of surplus real earnings management whitewash project exceeds a certain level, managers do not want to disclose too much information about CSR,based on the possibility of Earnings Manipulation identified increased consideration.Further, this paper also analyzes the influence of the media and the market environment on the inverted "U" type relationship. It is found that the governance effect of the two mechanisms has a significant moderating effect, namely, the lower the degree of marketization, the lower the degree of media attention. After controlling the endogenous influence, the conclusions of the study are still establishedFinally, this paper puts forward policy recommendations based on the empirical test results and the relevant analysis, that is, strengthen the supervision of earnings management behavior, improve CSRD mechanism, speed up the supervisory role of the institutional environment, and the effect of media governance.