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Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy

This paper aims to examine the relationship between corporate social responsibility reporting and earnings management. Precisely, we examine whether higher corporate social responsibility disclosures firms are gratified to perform in an accountable manner to restrain earnings management practices, t...

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Main Authors: Rahman, Mashiur, Abdul Rasid, Siti Zaleha, Basiruddin, Rohaida
Format: Article
Language:English
Published: Universiti Malaysia Terengganu 2020
Subjects:
HB Economic Theory
Online Access:http://eprints.utm.my/id/eprint/93153/1/SitiZalehaAbdulRasid2020_DoesSociallyCommittedBankManagerManipulateEarnings.pdf
http://eprints.utm.my/id/eprint/93153/
http://dx.doi.org/10.46754/JSSM.2020.12.012
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spelling my.utm.931532021-11-19T03:22:29Z http://eprints.utm.my/id/eprint/93153/ Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy Rahman, Mashiur Abdul Rasid, Siti Zaleha Basiruddin, Rohaida HB Economic Theory This paper aims to examine the relationship between corporate social responsibility reporting and earnings management. Precisely, we examine whether higher corporate social responsibility disclosures firms are gratified to perform in an accountable manner to restrain earnings management practices, thereby reporting higher-quality earnings to investors. The use of the generalised method of moments estimator for a Bangladeshi sample of 270 listed banking companies for the period 2009 to 2017 investigates the association between corporate social responsibility disclosures and earnings quality proxied by discretionary accruals. Results show that managers in an emerging economy manage earnings when they provide more CSR disclosures. Furthermore, Shariah compliant banks provide more corporate social responsibility information and maintain superior financial reporting quality through constraining earnings management. The outcomes of this research are noteworthy for both policymakers and market participants. Investors need to be cautious from the point of view that businessess engage in corporate social responsibility activities, behave ethically and provide transparent financial reports. Hence, policy makers need to be vigilant about this opportunistic practice and improve observing to implement social agreement. Probably, some strategies can be introduced to settle that corporate social responsibility revelations are grounded on genuine exercise and not just a “greenwash” proclamation to mislead shareholders. Universiti Malaysia Terengganu 2020 Article PeerReviewed application/pdf en http://eprints.utm.my/id/eprint/93153/1/SitiZalehaAbdulRasid2020_DoesSociallyCommittedBankManagerManipulateEarnings.pdf Rahman, Mashiur and Abdul Rasid, Siti Zaleha and Basiruddin, Rohaida (2020) Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy. Journal of Sustainability Science and Management, 15 (8). pp. 136-166. ISSN 1823-8556 http://dx.doi.org/10.46754/JSSM.2020.12.012
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
language English
topic HB Economic Theory
spellingShingle HB Economic Theory
Rahman, Mashiur
Abdul Rasid, Siti Zaleha
Basiruddin, Rohaida
Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy
description This paper aims to examine the relationship between corporate social responsibility reporting and earnings management. Precisely, we examine whether higher corporate social responsibility disclosures firms are gratified to perform in an accountable manner to restrain earnings management practices, thereby reporting higher-quality earnings to investors. The use of the generalised method of moments estimator for a Bangladeshi sample of 270 listed banking companies for the period 2009 to 2017 investigates the association between corporate social responsibility disclosures and earnings quality proxied by discretionary accruals. Results show that managers in an emerging economy manage earnings when they provide more CSR disclosures. Furthermore, Shariah compliant banks provide more corporate social responsibility information and maintain superior financial reporting quality through constraining earnings management. The outcomes of this research are noteworthy for both policymakers and market participants. Investors need to be cautious from the point of view that businessess engage in corporate social responsibility activities, behave ethically and provide transparent financial reports. Hence, policy makers need to be vigilant about this opportunistic practice and improve observing to implement social agreement. Probably, some strategies can be introduced to settle that corporate social responsibility revelations are grounded on genuine exercise and not just a “greenwash” proclamation to mislead shareholders.
format Article
author Rahman, Mashiur
Abdul Rasid, Siti Zaleha
Basiruddin, Rohaida
author_facet Rahman, Mashiur
Abdul Rasid, Siti Zaleha
Basiruddin, Rohaida
author_sort Rahman, Mashiur
title Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy
title_short Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy
title_full Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy
title_fullStr Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy
title_full_unstemmed Does socially committed bank manager manipulate earnings through dicretionary accruals? Empirical evidence from an emerging economy
title_sort does socially committed bank manager manipulate earnings through dicretionary accruals? empirical evidence from an emerging economy
publisher Universiti Malaysia Terengganu
publishDate 2020
url http://eprints.utm.my/id/eprint/93153/1/SitiZalehaAbdulRasid2020_DoesSociallyCommittedBankManagerManipulateEarnings.pdf
http://eprints.utm.my/id/eprint/93153/
http://dx.doi.org/10.46754/JSSM.2020.12.012
_version_ 1717093427621920768
score 13.211869

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