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VOL. 9, ISSUE 3 (2023)
Relationship of corporate social responsibility and corporate governance with earnings management: A review
Authors
Palki Aggarwal, Dr. Silender Singh
Abstract
This paper aims to review the existing
literature on the relationship of Corporate Social Responsibility (CSR) and
Corporate Governance (CG) with Earnings Management (EM) in different countries.
Since there have been so many corporate frauds in recent years, corporate
governance and earnings management have received more attention. The unexpected
failures of major corporations, which are typically the result of poor
governance, had a severe impact on the global economies. This paper provides
insights into the prior literature related to the association between CSR
activities and earnings management practices. It also reviews the existing
research on several conceptual models of corporate governance and demonstrates
how effective corporate governance (CG) results in regulating earnings
management practices. Findings of the preceding studies related to CSR-EM give
mixed results, most of the findings suggested that there is a negative
relationship, some found a positive relationship whereas some revealed that
there is no association between CSR and EM. Most of the results demonstrated
that socially responsible companies with a good CG mechanism significantly
reduce earnings management (EM) practices. This review study adds to the array
of existing literature on the association of corporate social responsibility,
corporate governance with earnings management.
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Pages:19-25
How to cite this article:
Palki Aggarwal, Dr. Silender Singh "Relationship of corporate social responsibility and corporate governance with earnings management: A review". International Journal of Commerce and Management Research, Vol 9, Issue 3, 2023, Pages 19-25
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