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Ethics and Sustainability in Accounting and Finance, Volume I pp 51–68Cite as

The Relationship Between Corporate Social Responsibility and Earnings Management In Terms of Accounting Information Quality

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Abstract

Accounting applications have partial flexibilities to have the capability to adapt different conditions. This situation gives executives the ability to make it look like the business’ activity results are different than they actually are. Manipulations such as earnings management decrease the accounting information quality, which consequently causes users of financial statements to make deficient or erroneous decisions and this negatively affects an important portion of the society. Businesses claim that corporate social responsibility is a manifestation of transparent and accountable administrative practices. Therefore, an outcome of corporate social responsibility should be providing the public with reliable financial statements. In that case, it can be expected that assuming a corporate social responsibility based point view should in turn limit the manipulation of financial statements through the usage of earnings management applications, at least to a degree. Because of the fact that corporate social responsibility can be an inhibiting factor for earnings management, the quality of the information presented to the interest groups might also increase. This study aims to reveal the relationship between corporate social responsibility and earnings management according to accounting information quality.

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Notes

  1. 1.

    Concepts of accounting quality , financial reporting quality , and financial information quality are used in similar denotations in the literature (see also Verdi 2006; Callen et al. 2012), and the term accounting information quality is used in this study.

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Author information

Authors and Affiliations

  1. Department of Business Administration, Faculty of Economics and Administrative Sciences, Karadeniz Technical University, Trabzon, Turkey

    Uğur Kaya

  2. Department of Business Administration, Faculty of Economics and Administrative Sciences, Aksaray University, Aksaray, Turkey

    Ömer Yazan

Authors
  1. Uğur Kaya
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  2. Ömer Yazan
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Correspondence to Uğur Kaya .

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Editors and Affiliations

  1. Trakya University, Balkan Yerleşkesi, Edirne, Turkey

    Kıymet Tunca Çalıyurt

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Kaya, U., Yazan, Ö. (2019). The Relationship Between Corporate Social Responsibility and Earnings Management In Terms of Accounting Information Quality. In: Çalıyurt, K. (eds) Ethics and Sustainability in Accounting and Finance, Volume I. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-13-3203-6_4

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