The Research Of The Relationship Between Corporate Charitable Donations And Accrued Earnings Management Based On Media Attention

Corporate charitable donation,located in the top of Corporate Social Responsibility pyramids,is the highest expression of corporate social responsibility as a modern social citizen.With the rapid development of China's philanthropy in recent years,enterprises have become the main body of charitable donations.However,as a for-profit organization,making donated assets free of charge is contrary to the original intention of the enterprise.Are corporate charitable donations exhibiting the corporate social morality or one of the tools that managers use to transfer the focus of stakeholders,which means that corporate charitable donations can suppress or promote earnings management.This is an issue that is highly valued in both theoretical and practical circles.Media attention is known as the effective external governance mechanism.The influence on corporate behaviors and capital market is also worth exploring.Based on the “ethical theory” and “tool theory” of corporate social responsibility,this paper employ stakeholders theory,reputation capital theory,reputation theory and principal-agent theory It first sorts out relevant theories of corporate charitable donation and earnings management,and selects samples of Chinese A-share listed companies between 2010 and 2016 to analyze the motives of corporate charitable donations from the perspective of accrued earnings management.Secondly,this paper empirically examines the governance role of media attention,and investigates the moderating role of media attention between corporate charitable donations and accrued earnings management.Thirdly,the findings show that corporate charitable donations are significantly negatively correlated with accrued earnings management,and media attention can alleviate accrued earnings management,but media attention has significantly weakened the negative relationship of corporate charitable donations and accrued earnings management.Finally,through the furthering study considering the nature of property rights differences,the findings show that the moderating role of media attention are only significant in the non-state-owned enterprise.The innovation of this paper is to enrich the studies on the relationships between corporate charitable donations and accrued earnings management,and introduce the moderating role of the media attention,which is considered as an external governance mechanism,to explore the influence on the relationship between corporate charitable donations and accrued earnings management,which helps investors to deepen the understanding of thecorporate coporate charitable donations and corporate governance effect of media attention.