Publicação
ESG and earnings management : the moderating role of firm size
| Resumo: | This study investigates the relationship between environment, social, and governance (ESG) and earnings management (EM) as well as the moderating effect of firm size on their relationship. By using available data from EU-15 public non-financial companies between 2012-2021, with 1190 firm-year observations, I use linear regression approach through balanced panel data regression controlling year and country fixed effect as well as firm-year cluster error. The results show a negative association of ESG and EM practices as well as firm size stimulation effect, at the same time, firm size both positive related to ESG and EM. The findings provide evidence for ESG-EM nexus in stakeholder theory, firm size and ESG relation in legitimacy and agency theory, and firm size and EM connection in motivation theory, in the meantime, fill in the gap of moderation effect relevant research. This study offers insights for policy makers, investors and business partners and other stakeholders. In practices, more large companies with more social responsibility present more reliable financial information and more sustainable economic performance. |
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| Autores principais: | Zhou, Shiyanshan |
| Assunto: | ESG Earnings Management Firm Size Accruals Earnings Management Gestão de Resultados Dimensão da empresa Accruals |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso restrito |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | This study investigates the relationship between environment, social, and governance (ESG) and earnings management (EM) as well as the moderating effect of firm size on their relationship. By using available data from EU-15 public non-financial companies between 2012-2021, with 1190 firm-year observations, I use linear regression approach through balanced panel data regression controlling year and country fixed effect as well as firm-year cluster error. The results show a negative association of ESG and EM practices as well as firm size stimulation effect, at the same time, firm size both positive related to ESG and EM. The findings provide evidence for ESG-EM nexus in stakeholder theory, firm size and ESG relation in legitimacy and agency theory, and firm size and EM connection in motivation theory, in the meantime, fill in the gap of moderation effect relevant research. This study offers insights for policy makers, investors and business partners and other stakeholders. In practices, more large companies with more social responsibility present more reliable financial information and more sustainable economic performance. |
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