The Relationship Between Corporate Social Responsibility Report Verification And Earnings Management

In recent years,there have been many financial fraud scandals in the capital market.Earnings management has developed into a more common behavior.Managers have reached the performance indicators required by investors through the whitewashing of financial indicators,which affects the authenticity and reliability of accounting information.Sexuality affects the investment decisions of stakeholders and affects the value and sustainability of the company in the long run.China's corporate social responsibility report and its assurance are developing rapidly.The earnings management behavior of enterprises is also a phenomenon of lack of social responsibility.Therefore,it is important to study the relationship and impact between corporate social responsibility report assurance and earnings management.Based on the principal-agent theory,legitimacy theory,stakeholder theory and information transfer theory,this paper selects the non-financial listed companies that issued social responsibility reports in Shanghai and Shenzhen stock markets from 2012 to 2017 as samples,and divides the earnings management behavior into accrual earnings management and real earnings management according to different earnings management methods.This paper studies the relationship between corporate social responsibility report verification and earnings management.Based on the institutional background of our country,this paper studies the relationship between corporate social responsibility report assurance and earnings management by combining the differences of disclosure motivation and earnings management methods under different disclosure modes.At the same time,the differences in the impact of social responsibility report assurance on earnings management under different disclosure methods are compared.This paper enriches the research in the field of corporate social responsibility and provides suggestions for the formulation of relevant regulatory policies for empirical evidence.The results show that there is a negative correlation between corporate social responsibility report assurance and earnings management,that is to say,the lower the degree of earnings management of enterprises that fulfill their social responsibility and take the initiative in social responsibility report assurance.In addition,further combined with the background of China's system and earnings management mode,the study found that the listed companies voluntarily disclose social responsibility to actively verify the social responsibility report can inhibit the accrual earnings management and the real earnings management behavior,and the inhibition effect on the real earnings management is more obvious under the disclosure mode,but the corresponding earnings management has no significant inhibition effect.Voluntary disclosure has a certain inhibitory effect on both ways of earnings management.Finally,according to the conclusions of the study,this paper puts forward policy recommendations from three levels: regulatory agencies,assurance providers and enterprises.