Access the full text.
Sign up today, get DeepDyve free for 14 days.
J. Margolis, J. Walsh (2003)
Misery Loves Companies: Rethinking Social Initiatives by BusinessAdministrative Science Quarterly, 48
April Klein (2002)
Audit Committee, Board of Director Characteristics, and Earnings ManagementSEIN Corporate Governance & Accountability eJournal
Shahed Imam (2000)
Corporate social performance reporting in BangladeshManagerial Auditing Journal, 15
Abagail McWilliams, D. Siegel (2001)
Corporate Social Responsibility: a Theory of the Firm PerspectiveAcademy of Management Review, 26
I. Laksmana, Ya‐wen Yang (2008)
Corporate citizenship and earnings attributesAdvances in Accounting, 25
Abagail McWilliams, D. Siegel (2000)
Corporate social responsibility and financial performance: correlation or misspecification?Strategic Management Journal, 21
Law. (2011)
Working conditions in the Bangladesh readymade garments industry : is social compliance making a difference?
Noel Brown, C. Deegan (1998)
The public disclosure of environmental performance information—a dual test of media agenda setting theory and legitimacy theoryAccounting and Business Research, 29
Dechun Wang (2006)
Founding Family Ownership and Earnings QualityJournal of Accounting Research, 44
M. Azim, Shaila Ahmed, M. Islam (2009)
Corporate Social Reporting Practice: Evidence from Listed Companies in BangladeshJournal of Asia-Pacific Business, 10
S. Callan, Janet Thomas (2009)
Corporate financial performance and corporate social performance: an update and reinvestigationCorporate Social Responsibility and Environmental Management, 16
Arifur Khan, M. Muttakin, Javed Siddiqui (2012)
Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging EconomyJournal of Business Ethics, 114
Community involvement: • Charitable donations and subscriptions. • Sponsorships and advertising
D. Schuler, M. Cording (2006)
A Corporate Social Performance–Corporate Financial Performance Behavioral Model for ConsumersAcademy of Management Review, 31
R. Gray, Reza Kouhy, Simon Lavers (1995)
Constructing a research database of social and environmental reporting by UK companiesAccounting, Auditing & Accountability Journal, 8
• Focus on customer service and satisfaction
R. Haniffa, Terence Cooke (2005)
The impact of culture and governance on corporate social reportingJournal of Accounting and Public Policy, 24
Lukas Setia-Atmaja, Janto Haman, G. Tanewski (2011)
The role of board independence in mitigating agency problem II in Australian family firmsBritish Accounting Review, 43
Muhammad Islam, C. Deegan (2008)
Motivations for an Organisation within a Developing Country to Report Social Responsibility Information: Evidence from BangladeshOrganizations & Markets: Policies & Processes eJournal
Bert Scholtens, F. Kang (2013)
Corporate Social Responsibility and Earnings Management: Evidence from Asian EconomiesCorporate Social Responsibility and Environmental Management, 20
J. Griffin, J. Mahon (1997)
The corporate social performance and corporate The corporate social performance and corporate financial performance debate: Twenty-five years of incomparable research
D. Collins, P. Hribar (1999)
Errors in Estimating Accruals: Implications for Empirical ResearchSamuel Curtis Johnson Graduate School of Management at Cornell University Research Paper Series
Andrei Shleifer, Robert Vishny (1996)
A Survey of Corporate GovernanceOrganizations & Markets eJournal
Javed Siddiqui (2010)
Development of Corporate Governance Regulations: The Case of an Emerging EconomyJournal of Business Ethics, 91
R. Gray, D. Owen, K. Maunders (1987)
Corporate social reporting : accounting and accountability
Jere Francis (2004)
What do we know about audit qualityBritish Accounting Review, 36
A. Hillman, Gerald Keim (2001)
Shareholder value, stakeholder management, and social issues: what's the bottom line?Strategic Management Journal, 22
F. Gul, Sidney Leung (2004)
BOARD LEADERSHIP, OUTSIDE DIRECTORS EXPERTISE AND VOLUNTARY CORPORATE DISCLOSURESJournal of Accounting and Public Policy, 23
Eric Yip, C. Staden, S. Cahan (2011)
Corporate Social Responsibility Reporting and Earnings Management: The Role of Political CostsThe Australasian Accounting Business and Finance Journal, 5
V. Beattie (2005)
Moving the financial accounting research front forward: the UK contributionBritish Accounting Review, 37
D. Neu, Hussein Warsame, K. Pedwell (1998)
Managing Public Impressions: Environmental Disclosures in Annual ReportsAccounting Organizations and Society, 23
T. Choi, Jinhan Pae (2011)
Business Ethics and Financial Reporting Quality: Evidence from KoreaJournal of Business Ethics, 103
Omar Farooque, Tony Zijl, K. Dunstan, A. Karim (2007)
Corporate Governance in Bangladesh: Link between Ownership and Financial PerformanceOrganizations & Markets eJournal
Stewart Jones, D. Hensher (2007)
Modelling corporate failure: A multinomial nested logit analysis for unordered outcomesBritish Accounting Review, 39
(2013)
US set to suspend Bangladesh trade privileges
(1998)
Industrial pollution and the environment in Bangladesh: an overview
Patricia Dechow, Ilia Dichev (2002)
The Quality of Accruals and Earnings: The Role of Accrual Estimation ErrorsThe Accounting Review, 77
(2002)
A structuration view on the initiation of environmental reports
Leather, Clothing Industries, Swizerland (2000)
Labour practices in the footwear, leather, textiles and clothing industries : report for discussion at the Tripartite Meeting on Labour Practices inthe Footwear, Leather, Textiles and Clothing Industries, Geneva, 2000
L. Cronbach (1951)
Coefficient alpha and the internal structure of testsPsychometrika, 16
A. Islam, M. Khaled (2005)
Tests of Weak-Form Efficiency of the Dhaka Stock ExchangeARN Wiley-Blackwell Publishers Journals
A. Belal (2000)
Environmental reporting in developing countries:empirical evidence from BangladeshEco-management and Auditing, 7
(2005)
Global Economics Paper No: 134 ‐ How Solid are the BRICs
J. Hooley (1986)
Data in Search of a Theory.Psyccritiques, 31
Product and service information: • Types of products disclosed. • Product development and research. • Product quality and safety. • Discussion of marketing network
Employee profit sharing. • Managerial remuneration. • Workers' occupational health and safety
Arieh Ullmann (1985)
Data in Search of a Theory: A Critical Examination of the Relationships Among Social Performance, Social Disclosure, and Economic Performance of U.S. FirmsAcademy of Management Review, 10
Diego Jiménez, Jordi Surroca, Josep Tribó (2008)
Are Socially Responsible Managers Really Ethical? Exploring the Relationship between Earnings Management and Corporate Social ResponsibilityNew Institutional Economics
Value-added information: • Value-added statement
Yongtao Hong, M. Andersen (2011)
The Relationship Between Corporate Social Responsibility and Earnings Management: An Exploratory StudyJournal of Business Ethics, 104
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
(2012)
The impact of corporate social responsibility (CSR) on financial reporting quality‐Evidence from European blue chips”, Working paper, HHL – Leipzig Graduate School of Management, Saxony
Christine Botosan (1997)
Disclosure level and the cost of equity capitalAccounting review: A quarterly journal of the American Accounting Association, 72
R. Davidson, J. MacKinnon (1994)
Estimation and inference in econometrics
Jere Francis, J. Krishnan (1999)
Accounting Accruals and Auditor Reporting ConservatismContemporary Accounting Research, 16
Terence Cooke (1992)
The Impact of Size, Stock Market Listing and Industry Type on Disclosure in the Annual Reports of Japanese Listed CorporationsAccounting and Business Research, 22
Afzalur Rashid, S. Lodh (2008)
The influence of ownership structures and board practices on corporate social disclosures in BangladeshResearch in Accounting in Emerging Economies, 8
Nikolay Dentchev (2004)
Corporate Social Performance as a Business StrategyJournal of Business Ethics, 55
Hsiang-Lin Chih, Chung-Hua Shen, F. Kang (2008)
Corporate Social Responsibility, Investor Protection, and Earnings Management: Some International EvidenceJournal of Business Ethics, 79
Nazli Ghazali (2007)
Ownership structure and corporate social responsibility disclosure: some Malaysian evidenceCorporate Governance, 7
A. Belal (2001)
A study of corporate social disclosures in BangladeshManagerial Auditing Journal, 16
S. Abhayawansa, M. Azim (2014)
Corporate reporting of intellectual capital: evidence from the Bangladeshi pharmaceutical sectorAsian Review of Accounting, 22
C. Deegan (2000)
Financial Accounting Theory
M. Muttakin, Arifur Khan (2014)
Determinants of corporate social disclosure: Empirical evidence from BangladeshAdvances in Accounting, 30
S. Waddock, Samuel Graves (1997)
The corporate social performance-financial performance linkStrategic Management Journal, 18
A. Belal (2007)
The Views of Corporate Managers on the Current State of, and Future Prospects for, Social Reporting in Bangladesh: An Engagement Based Study
(1996)
Accounting and Accountability: Social and Environmental Accounting in a Changing World, Prentice‐Hall
Giovanni Cespa, Giacinta Cestone (2004)
Corporate Social Responsibility and Managerial EntrenchmentSEIN Social Impacts of Business eJournal
S. Kothari, A. Leone, Charles Wasley (2002)
Performance Matched Discretionary Accrual MeasuresMIT Sloan School of Management Working Paper Series
Sulaiman Mouselli, Aziz Jaafar, K. Hussainey (2012)
Accruals quality vis-à-vis disclosure quality: Substitutes or complements?British Accounting Review, 44
(1994)
Companies Act, 1994, Ministry of Commerce
(2009)
Bangladesh: corporate governance country assessment
P. Koh (2003)
On the association between institutional ownership and aggressive corporate earnings management in AustraliaBritish Accounting Review, 35
B. Ruf, K. Muralidhar, Robert Brown, J. Janney, K. Paul (2001)
An Empirical Investigation of the Relationship Between Change in Corporate Social Performance and Financial Performance: A Stakeholder Theory PerspectiveJournal of Business Ethics, 32
(2001)
) , “ Rise of readymade garments industry in Bangladesh : entrepreneurial ingenuity of public policy ”
R. Haniffa, Terence Cooke (2002)
Culture, Corporate Governance and Disclosure in Malaysian CorporationsAbacus, 38
US suspends Bangladesh trade privileges after garment industry disaster
Purpose– This paper aims to explore the relationship between corporate social responsibility (CSR) disclosures and earnings quality proxied by earnings accruals. Specifically, we examine whether CSR disclosures are context-specific, that is, whether companies dominated by powerful stakeholders are obliged to behave in a responsible manner to constrain earnings management, thereby reporting higher-quality earnings to investors. Design/methodology/approach– This paper explores the relationship between CSR disclosures and earnings quality proxied by earnings accruals. Specifically, we examine whether CSR disclosures are context-specific, that is, whether companies dominated by powerful stakeholders are obliged to behave in a responsible manner to constrain earnings management, thereby reporting higher-quality earnings to investors. Findings– Results show that managers in an emerging economy manage earnings when they provide more CSR disclosures. Such earnings management is achieved through income increasing discretionary accruals. Furthermore, companies from export-oriented industries dominated by powerful stakeholders (international buyers) disclosing more CSR activities, provide transparent financial reports through constraining earnings management. Originality/value– The findings of this study are significant for both investors and policymakers. Investors should not take for granted that firms engage in CSR activities, behave ethically and provide transparent financial reports. As we document that firms might manipulate earnings through discretionary accruals and provide less transparent financial reports to shareholders, the credibility of firms’ CSR policies should be assessed with caution. Policies directing at promoting socially responsible practices instead of motivating the desired behaviour, may provide managers with additional incentives to utilise CSR for opportunistic behaviour. Thus, policymakers need to be cautious about this opportunistic behaviour and enhance monitoring to enforce social compliance. Possibly, some guidelines can be introduced to confirm that CSR disclosures are based on actual practice and not just a “green wash” statement to deceive stakeholders.
Managerial Auditing Journal – Emerald Publishing
Published: Mar 2, 2015
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.