Correlation between Earnings Management Behavior and Corporate Performance Based on ESG Rating

Mengxin Yuan

doi:10.54097/8r38jh02

Authors

Mengxin Yuan

DOI:

https://doi.org/10.54097/8r38jh02

Keywords:

ESG rating, Earnings management, Company performance, Relevance, Empirical analysis

Abstract

The purpose of this study is to deeply explore how ESG (Environmental, Social and Governance) rating affects the earnings management behavior of enterprises, and further analyze the impact of this behavior on corporate performance. By constructing theoretical framework and research hypothesis, this paper makes an empirical analysis of the correlation between ESG rating, earnings management and corporate performance by using multiple linear regression model. The results show that enterprises with high ESG rating often show more standardized earnings management behavior, which has a significant positive impact on corporate performance. This discovery provides a new idea for enterprises to improve their performance, and also provides an important reference for investors to evaluate the value of enterprises. This study not only enriches the theoretical system of the relationship between ESG rating and earnings management, but also provides useful guidance for enterprise management practice and investment decision.

Downloads

Download data is not yet available.

References

Gao Yanyan, Huang Jianbo. ESG rating performance and corporate real earnings management-evidence from China A-share listed companies [J]. Financial Development Research, 2023(1):3-12.

Wang Jingxuan. ESG Performance, Inefficient Investment and Earnings Management [J]. Cooperative Economy and Technology, 2023(23):120-122.

Qu Wenbin, He Boyu. Can ESG performance constrain real earnings management behavior? —— Empirical evidence from listed companies in China [J]. Science and Technology Management of Land and Resources, 2023, 40(1):104-116.

Zhang Jing, Liu Xuekun. Empirical study on the influence of ESG score on the value at risk of corporate bonds [J]. Investment Research, 2022, 41(11):25-43.

Ni Guoai, Dou Xian. Can ESG performance promote enterprise innovation? [J]. Journal of Tongling University, 2021, 20(6):40-47.

Li Zhengwei, Zhang Yinqi, Tang Jianping. Research on investment strategy based on ESG rating [J]. Investors, 2022(1):30-45.

Zhao Yi. The relationship between ESG performance and corporate financial performance-taking baoshan iron & steel as an example [J]. Investment and Entrepreneurship, 2022(12):55-57.

Yan Weixiang, Zhao Yu, Meng Defeng. Research on the influence of ESG rating on the financial performance of listed companies [J]. Journal of Nanjing Audit University, 2023, 20(6):71-80.

Tao Yanlin. Empirical study on the influence of ESG rating on corporate financial performance-empirical evidence from A-share listed companies [J]. China Market, 2023(34):13-20.