Earnings Management and Corporate Social Responsibility

• Main Authors: Benjamin Uyagu, Alexander Olawumi Dabor
• Format: Article
• Language: English
• Published: Editura ASE Bucuresti 2017-09-01
• Series: Romanian Economic Journal
• Subjects: Earnings management; corporate social responsibility; Stakeholder
• Online Access: http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2017-10-19/3476/4uyagu.pdf

This study lies at the heart of the issue of reliability of financial statements. Reliability is the accountant’s terminology for integrity of financial statements. This study focused on the impact of Corporate Social Responsibility on earnings management in the Nigerian manufacturing sectors. The study is motivated by the paucity of research on subject matter in manufacturing sub-sector in Nigeria. The study employed the ordinary least square multivariate regression technique. A sample of fifty- two manufacturing firms was used. The result shows that there is a positive relationship between CSR and earnings management. This study recommended that statutory bodies should put a ceiling on the amount to be expended on CSR which must be exceeded by any firm.