The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management

Research Question: Does Good Corporate Governance have a moderating effect on the relationship between Corporate Social Responsibility and Real earnings management? Motivation: Nowadays, the relationship between responsible governance and REM has gained momentum in the accounting and financial stu...

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Main Authors: Sawssen Khlifi, Ghazi Zouari
Format: Article
Language:English
Published: Bucharest University of Economic Studies 2022-12-01
Series:Contabilitate şi Informatică de Gestiune
Subjects:
Online Access:http://online-cig.ase.ro/jcig/art/21_4_3.pdf
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author Sawssen Khlifi
Ghazi Zouari
author_facet Sawssen Khlifi
Ghazi Zouari
author_sort Sawssen Khlifi
collection DOAJ
description Research Question: Does Good Corporate Governance have a moderating effect on the relationship between Corporate Social Responsibility and Real earnings management? Motivation: Nowadays, the relationship between responsible governance and REM has gained momentum in the accounting and financial studies. In this context, the present work will provide more insight into the relationship between responsible governance factors (GCG, CSR) and REM in the presence of R&D and M&A. Idea: this paper is to examine the moderating effect of good corporate governance (GCG) on the relationship between corporate social responsibility (CSR) and real earnings management (REM) level in innovative firms during mergers and acquisitions (M&A) transactions. Data: Using the corporate governance ratio and CSR scores calculated by the Thomson Reuters Eikon ASSET4 database, this study was developed to investigate these issues on a sample of 113 U.S. S&P 500 index firms between 2015 and 2021. This study adopted a sampling process that divides the total sample into two sub-samples according to whether the companies are involved in M&A transactions (test sample) or not (control sample). Tools: Multiple regressions on panel data is used to estimate our hypotheses. Findings: The empirical results reveal that CSR score has a negative and statistically significant effect on REM in highly R&D-intensive firms involved in M&A. Furthermore, the findings suggest that that good corporate governance variable plays a moderating role in the relationships between CSR and REM of these firms but not for the non-merged ones. Contribution: This research contributes to the literature by providing the significant links between some CSR, good corporate governance and the REM level within R&D-intensive firms in the American M&A market.
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spelling doaj.art-ee2edfaa61014e389c943e38a0997e012023-01-07T16:36:09ZengBucharest University of Economic StudiesContabilitate şi Informatică de Gestiune1583-43872022-12-0121452454510.24818/jamis.2022.04003The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings managementSawssen Khlifi0Ghazi Zouari1Faculty of Economics and Management of Sfax, University of Sfax, TunisiaaFaculty of Economics and Management of Sfax, University of Sfax, TunisiaResearch Question: Does Good Corporate Governance have a moderating effect on the relationship between Corporate Social Responsibility and Real earnings management? Motivation: Nowadays, the relationship between responsible governance and REM has gained momentum in the accounting and financial studies. In this context, the present work will provide more insight into the relationship between responsible governance factors (GCG, CSR) and REM in the presence of R&D and M&A. Idea: this paper is to examine the moderating effect of good corporate governance (GCG) on the relationship between corporate social responsibility (CSR) and real earnings management (REM) level in innovative firms during mergers and acquisitions (M&A) transactions. Data: Using the corporate governance ratio and CSR scores calculated by the Thomson Reuters Eikon ASSET4 database, this study was developed to investigate these issues on a sample of 113 U.S. S&P 500 index firms between 2015 and 2021. This study adopted a sampling process that divides the total sample into two sub-samples according to whether the companies are involved in M&A transactions (test sample) or not (control sample). Tools: Multiple regressions on panel data is used to estimate our hypotheses. Findings: The empirical results reveal that CSR score has a negative and statistically significant effect on REM in highly R&D-intensive firms involved in M&A. Furthermore, the findings suggest that that good corporate governance variable plays a moderating role in the relationships between CSR and REM of these firms but not for the non-merged ones. Contribution: This research contributes to the literature by providing the significant links between some CSR, good corporate governance and the REM level within R&D-intensive firms in the American M&A market. http://online-cig.ase.ro/jcig/art/21_4_3.pdfcorporate social responsibility (csr)good corporate governance (gcg)real earnings management (rem)mergers and acquisitions (m&a)
spellingShingle Sawssen Khlifi
Ghazi Zouari
The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
Contabilitate şi Informatică de Gestiune
corporate social responsibility (csr)
good corporate governance (gcg)
real earnings management (rem)
mergers and acquisitions (m&a)
title The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
title_full The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
title_fullStr The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
title_full_unstemmed The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
title_short The moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
title_sort moderating role of good corporate governance on the relationship between corporate social responsibility and real earnings management
topic corporate social responsibility (csr)
good corporate governance (gcg)
real earnings management (rem)
mergers and acquisitions (m&a)
url http://online-cig.ase.ro/jcig/art/21_4_3.pdf
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