The Darkness of Earnings Management: Earnings Management and Information Disclosure of Enterprises’ ESG
DOI:
https://doi.org/10.54097/hbem.v9i.9077Keywords:
Earnings Management; Enterprises’ ESG; Information Disclosure; Listed Companies.Abstract
With the increasing social attention paid to the environment, Environmental, Social, and Governance (ESG) has been valued by the government and social investors. Earnings management, as a form of financial fraud, has a negative impact on all aspects of enterprises. Based on the ESG disclosure of Bloomberg’s assessment and the data of A-share listed companies in the Shanghai stock market from 2008 to 2018, this paper uses the fixed effect model of panel data to fix industries and years and explores the impact of earnings management on information disclosure of enterprises’ ESG. The results show that the improvement in earnings management significantly weakens ESG disclosure. According to further analysis, it is found that the earnings management of state-owned enterprises compared with private enterprises has a greater weakening effect on ESG disclosure. Meanwhile, in terms of management structure, compared with the company where the chairman and general manager are not the same person, the earnings management of the company with CEO duality has a greater weakening effect on ESG disclosure.
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