Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective
Drawing on social norm theory, this study delves into the nexus between real earnings manipulation (REM) and Environmental, Social, and Governance (ESG) disclosure within Egypt's emerging capital market. By analyzing data from the S&P/EGX ESG index (2013–2018) through a two-stage regression...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2023-12-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844023100405 |
| _version_ | 1797383922505482240 |
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| author | Tingli Liu Aya Abdelbaky Ahmed A. Elamer Mohamed Elmahgoub |
| author_facet | Tingli Liu Aya Abdelbaky Ahmed A. Elamer Mohamed Elmahgoub |
| author_sort | Tingli Liu |
| collection | DOAJ |
| description | Drawing on social norm theory, this study delves into the nexus between real earnings manipulation (REM) and Environmental, Social, and Governance (ESG) disclosure within Egypt's emerging capital market. By analyzing data from the S&P/EGX ESG index (2013–2018) through a two-stage regression analysis, we unearth a noteworthy pattern: heightened REM practices correspond with reduced tendencies for ESG sustainability disclosure. Notably, this association is moderated by managerial ownership, which diminishes the negative linkage between REM and ESG transparency. A unique cultural insight emerges, revealing that religiously-aligned firms leverage REM as a risk-mitigation mechanism, leading to curtailed ESG disclosures. Our findings cast a spotlight on a possible managerial tilt towards short-term gains, often overshadowing long-term sustainability imperatives, especially in religiously influenced contexts. As we advance understanding of REM-ESG dynamics in religious emerging markets, our study highlights the pressing need for enhanced sustainability consciousness and accountability in these regions. |
| first_indexed | 2024-03-08T21:28:03Z |
| format | Article |
| id | doaj.art-4963a96f08af4065932c38ededbd0a58 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T21:28:03Z |
| publishDate | 2023-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-4963a96f08af4065932c38ededbd0a582023-12-21T07:34:49ZengElsevierHeliyon2405-84402023-12-01912e22832Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspectiveTingli Liu0Aya Abdelbaky1Ahmed A. Elamer2Mohamed Elmahgoub3School of Economics and Management, Beijing University of Technology, Beijing, 100022, ChinaSchool of Economics and Management, Beijing University of Technology, Beijing, 100022, China; Department of Accounting, Faculty of Commerce, Damietta University, Damietta, 22052, Egypt; Corresponding author. School of Economics and Management, Beijing University of Technology, Beijing, 100022, China.Brunel Business School, Brunel University of London, Uxbridge, UB8 3PH, UK; College of Business Administration, Gulf University for Science and Technology (GUST), Mubarak Al-Abdullah Area/West Mishref, KuwaitSouthampton Business School, University of Southampton, University Road, Southampton, SO17 1BJ, UK; Department of Accounting, Faculty of Commerce, Mansoura University, Mansoura, EgyptDrawing on social norm theory, this study delves into the nexus between real earnings manipulation (REM) and Environmental, Social, and Governance (ESG) disclosure within Egypt's emerging capital market. By analyzing data from the S&P/EGX ESG index (2013–2018) through a two-stage regression analysis, we unearth a noteworthy pattern: heightened REM practices correspond with reduced tendencies for ESG sustainability disclosure. Notably, this association is moderated by managerial ownership, which diminishes the negative linkage between REM and ESG transparency. A unique cultural insight emerges, revealing that religiously-aligned firms leverage REM as a risk-mitigation mechanism, leading to curtailed ESG disclosures. Our findings cast a spotlight on a possible managerial tilt towards short-term gains, often overshadowing long-term sustainability imperatives, especially in religiously influenced contexts. As we advance understanding of REM-ESG dynamics in religious emerging markets, our study highlights the pressing need for enhanced sustainability consciousness and accountability in these regions.http://www.sciencedirect.com/science/article/pii/S2405844023100405Real earnings managementESG sustainability disclosureEmerging marketsSocial norm theory |
| spellingShingle | Tingli Liu Aya Abdelbaky Ahmed A. Elamer Mohamed Elmahgoub Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective Heliyon Real earnings management ESG sustainability disclosure Emerging markets Social norm theory |
| title | Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective |
| title_full | Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective |
| title_fullStr | Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective |
| title_full_unstemmed | Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective |
| title_short | Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective |
| title_sort | real earnings management and esg disclosure in emerging markets the moderating effect of managerial ownership from a social norm perspective |
| topic | Real earnings management ESG sustainability disclosure Emerging markets Social norm theory |
| url | http://www.sciencedirect.com/science/article/pii/S2405844023100405 |
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