Sustainability Commitment Versus Earnings Management Practices: Saudi Insights

被引:0
|
作者
Al Barrak, Thamir [1 ]
Kouaib, Amel [1 ,2 ]
机构
[1] King Faisal Univ, Sch Business, Accounting Dept, Al Hasa 31982, Saudi Arabia
[2] Univ Sousse, Higher Inst Management, Accounting & Finance Dept, Sousse 4002, Tunisia
关键词
accruals-based earnings management; real earnings management; corporate sustainable management; CSR sustainability reporting; CSR sustainability committee; CSR sustainability external audit; GRI report guidelines; ESG index; auditor rotation; Saudi Arabia; Tadawul All Share Index; CORPORATE SOCIAL-RESPONSIBILITY; REAL ACTIVITIES MANIPULATION; SARBANES-OXLEY; IFRS ADOPTION; PERFORMANCE; BOARD; GOVERNANCE; FIRM; STRATEGIES; COMMITTEE;
D O I
10.3390/su16125100
中图分类号
X [环境科学、安全科学];
学科分类号
08 ; 0830 ;
摘要
This paper aims to examine the impact of corporate sustainable management (CSM) on earnings management (EM) activities using annual data from 2018 to 2022 for 37 non-financial Saudi indexed firms. A multi-measure approach was utilized to proxy for EM (AEM and REM) and CSM (CSR sustainability reporting, CSR sustainability committee, CSR sustainability external audit, GRI report guidelines, ESG performance index). The empirical analysis employed pooled ordinary least squares (POLS) regression. The results suggest that CSM plays a significant role in reducing both AEM and REM practices, indicating that sustainability-oriented organizations mitigate EM activities. Furthermore, the study reveals a negative correlation between CSM and sales manipulation, overproduction, and cutting discretionary expenditures. This research supports the notion that companies prioritize sustainable management due to a focus on long-term strategies and transparency. This is the first work in the Middle East and Arab region, particularly in Saudi Arabia, investigating this association.
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页数:20
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