Empricial Research On The Correlation Between Corporate Social Responsibility And Earnings Management

Along with the rapid economic growth and the continuous improvement of the capital market,the problem of earnings management of listed companies in China has become increasingly prominent.A series of accounting scandals and financial fraud incidents that have frequently erupted in recent years are the best examples.The management of the company artificially manipulates the surplus level to whitewash the financial results,causing the report to be distorted.This not only affects the rational judgment of external investors,but also seriously interferes with the Pareto optimality of resource allocation in the capital market,which is essentially its enterprise.The performance of the lack of social responsibility.Enterprises with high levels of corporate social responsibility performance may have higher moral awareness and tend to pursue their own economic development while taking into account the interests of stakeholders,thereby reducing their own earnings management behavior;however,enterprises may also rely on fulfillment Multi-social responsibility creates a responsible corporate image,which in turn covers the ongoing earnings management practices in the back.It can be seen that there is a complex relationship between corporate social responsibility performance and earnings management.On the basis of integrating the research results of scholars at home and abroad,this paper first discusses the influence mechanism of the relationship between corporate social responsibility performance and earnings management from the aspects of principal-agent theory,stakeholder theory,signal transmission theory and impression management theory.At the same time,the differences between them and different earnings management methods are discussed.Then further study the adjustment effect of analyst attention and financial performance level on the correlation between the two.This provides new empirical evidence for exploring the motives behind the fulfillment of social responsibility of listed companies in China and testing their external governance role in earnings management behavior.In terms of empirical research,this paper selects the 2011-2017 A-share listed company as a research sample,and the sample data is the social responsibility score data of Hexun.com and the financial data in the CSMAR database.Using the modified Jones model and learning from Roychowdhury's method to calculate accrued earnings management and real earnings management,and set two adjustment variables of analyst attention and financial performance level.Correlation analysis and multiple regression analysis were performed on the sample data using Stata15 and the corresponding robustness test was performed.The conclusions of the study show that corporate social responsibility performance has a significant negative correlation with accruals and real earnings management,and the negative correlation between corporate social responsibility performance and real earnings management is stronger than accrued earnings management.The increase in analysts' attention will strengthen the negative correlation between corporate social responsibility performance and accrued earnings management and real earnings management.The improvement of financial performance level has strengthened the negative correlation between corporate social responsibility performance and real earnings management,but weakened the negative correlation with accrued earnings management.Finally,combined with the research conclusions,relevant policy recommendations for promoting corporate social responsibility performance and reducing earnings management are proposed.