Real Earnings Management,Managerial Entrenchment And Corporate Social Responsibility

Although China's economy continues to develop at a rapid pace and people's living standards are improving,a series of unethical commercial activities and vicious incidents have caused moral crisis again and again,and even endanger the survival and development of enterprises.Enterprises can no longer focus on the interests of investors as before,but must focus on social responsibility because of the growing impact of the increasing attention.So in-depth study and solving such problems is expected by the community.Corporate social responsibility may be a responsible behavior based on the interests of shareholders and stakeholders,or it may be a strategic behavior based on managers' own interest and concealing their true earnings manipulation.Based on the perspective of real earnings management,this paper explores the influence factors and motivations of corporate social responsibility by combining managerial entrenchment,and explores the impact of true earnings manipulation and managerial entrenchment on corporate social responsibility performance,taking into account the different levels of managerial entrenchment.At the same time,it is considered whether the relationship between real earnings management and corporate social responsibility is different under different levels of managerial entrenchment.Based on the data of China's private enterprises from 2009 to 2014,from Shanghai and Shenzhen Stock Exchange,we investigate the motivations of corporate social responsibility from the perspective of real earnings management,combining with managerial entrenchment.The empirical results show that real earnings management is positively related to corporate social responsibility performance,so companies with high real-level earnings manipulation behave better in terms of social responsibility,so as to disguise their true earnings manipulation.This paper focuses on the current corporate social responsibility problem from the perspective of managers,and highlights the psychological motivation of managers in corporate social responsibility,which enriches the theory of social responsibility and helps us to grasp the corporate social responsibility behavior comprehensively.At the same time,we find that the level of managerial entrenchment is positively related to the fulfillment of corporate social responsibility.Therefore,the higher the level of managerial entrenchment,the better the performance of corporate social responsibility.And the relationship between real earnings management and corporate social responsibility(CSR)is different under the different levels of managerialentrenchment.The results show that managers are more likely to use corporate social responsibility as a cover-up for their true earnings manipulation with high levels of managerial entrenchment.Furthermore,this paper examines whether there are differences between real earnings manipulation and corporate social responsibility performance in different market environments.The study finds that compared with the listed companies with good market environment,in the companies with poor market environment,the positive correlation is more relevant.The discovery of this paper shows that managers' self-interest and defense motivations improve the performance of corporate social responsibility objectively.Therefore,in the practice of corporate social responsibility,managers need to be effectively supervised and constrained to avoid managers' strategic behavior.