The Correlation Study Of Corporate Social Responsibility And Earning Management

With the continuous economic development, corporate social responsibility emerged,based on stakeholder theory, companies seeking to maximize profits, not just the pursuit of maximizing the interests of the shareholders, but also to creditors, customers,employees, suppliers, social responsibility in all aspects of environmental, government and community. In recent years, accounting fraud incident occurs frequently, earnings management issue has become a hot issue. Based on the principal-agent theory, managers will through the earnings management behavior whitewash corporate financial reports for their own interests, impacting the right to judge of various stakeholders, and excessive earnings management would seriously damage the interests of stakeholders, and even lead corporate bankruptcy. In essence, earnings management is a manifestation of the lack of corporate social responsibility, corporate manipulate earnings management to meet part of stakeholder interests based on various purposes, but harm the interests of other stakeholders, which is contrary to the requirements of corporate social responsibility. Thus it is seen that exists between corporate social responsibility and the complex relationship between earnings management, then the corporate social responsibility in the end is out of moralism or opportunism? Moreover, with the relevant departments to intensify supervision of accrued earnings management maneuvering space is getting smaller, so companies turned to the manipulation of space is relatively large real earnings management, the corporate social responsibility and accrued earnings,real earnings have What is different is the relationship? These issues are worth for us to do further research.From the theoretical and empirical aspects of the relationship between earnings management and corporate social responsibility were studied, in theory, this paper defines corporate social responsibility and earnings management, the theoretical basis and relevance of the literature review, using stakeholders Agency theory on the relationship between the theoretical analysis; the empirical, paper manufacturing machinery and equipment category listed companies for the study, based 2010--2014 panel data, using Stata 12 on Corporate Social responsibility accrued earnings management and real the different effects of earnings management. For a measure of corporate social responsibility, this article from the perspective of stakeholders, factor analysis equipment and machinery manufacturing Construction of corporate social responsibility evaluation system, obtain the composite score for each corporate social responsibility as a corporate social responsibility metrics; accruals for earnings management, we use the modified Jones model to meter; for real earnings management practices Roychowdhury reference herein to meter. The results found that: Corporate social responsibility and accrued earnings management was a significant positive correlation in the China's machinery equipment industry listed companies, that corporate social responsibility cover the accrued surplus management, suggesting that in the short term in order to conceal the manager of corporate social responsibility activities to stakeholders damage, will be more of accrued earnings management, the results support opportunism; and corporate social responsibility and real earnings management was significantly negative correlation, that corporate social responsibility will inhibit the real earnings management behavior. This shows that three kinds of ways of the real earnings management is the management's short-sighted behavior, although it can achieve a predetermined target in the short term, but it has adversely affect for long-term development of enterprises, This is a violation of the interests of shareholders and investors, namely the company through the implementation of enterprise social responsibility to reduce real earnings management of the enterprise long-term value of the damage, this result supports moralism.