The Impact of Corporate Social Responsibilities on Earnings Management: Evidence from Vietnam

Abstract

Purpose: This study aims to assess whether listed companies comply with regulations on social responsibility disclosure and the regulatory role of CEO power impact earnings management. Theoretical framework: corporate social responsibility (CSR) has become a decisive factor in business performance and is consequential to the sustainable existence of enterprises in the world's competitive environment (Buckingham, 2012; Mark, 2012; Yinyoung et al., 2016; Enric, 2018) and also a concern in the context of many concerns about social and environmental issues. Design/methodology/approach: The study uses a data sample of 418 companies listed on the two stock exchanges HOSE and HNX in the period 2016 - 2020 through the method of general feasible least squares (FGLS) to measure the impact of corporate social responsibility and the impact of social responsibility with the regulation of CEO power on earnings management. Findings: This empirical evidence has provided reliable evidence to help listed companies have the incentive to comply with regulations on CSR disclosure to increase their prestige and attract investment. Research, Practical & Social implications: The research results admit that companies that comply with regulations on CSR disclosure have limited profit management, and in the case of influential executives, the impact of CSR on profit management is more substantial. Originality/value: the study only examines the impact of CSR combined with CEO power, so it is not possible to have an overview of the CEO's impact on the implementation of corporate CSR on EM and CSR in the regulation of corporate governance to EM. Therefore, this is the author's future research direction when considering this issue.