IDEAS home Printed from https://ideas.repec.org/a/eme/ijaimp/ijaim-08-2018-0095.html
   My bibliography  Save this article

The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies

Author

Listed:
  • Haijing Liu
  • Hyun-Ah Lee

Abstract

Purpose - This paper aims to verify the effect of corporate social responsibility (CSR) on Chinese listed firms’ earnings management and tax avoidance. Specifically, this study investigates whether government-guided CSR implementation indeed drives firms to behave in a responsible manner by constraining earnings management and tax avoidance. Design/methodology/approach - The paper analyses a sample of Chinese listed companies that are confronted with the unique situation of CSR being developed at a rapid pace by government-led policy and regulation. The study further investigates whether the effect of CSR on earnings management and tax avoidance is different for state-owned and private enterprises by partitioning the sample into these two subgroups. Findings - The findings of this study show that government-guided CSR could be effective in reducing the firms’ earnings management and tax avoidance, even though the effect is limited to state-owned enterprises. Originality/value - This paper provides new evidence on the relation of CSR with earnings management and tax avoidance in the Chinese context and sheds light on the importance of differentiating between the state-owned and private enterprises when studying the corporate behaviors of Chinese firms.

Suggested Citation

  • Haijing Liu & Hyun-Ah Lee, 2019. "The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 27(4), pages 632-652, October.
    • Handle: RePEc:eme:ijaimp:ijaim-08-2018-0095
    DOI: 10.1108/IJAIM-08-2018-0095
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJAIM-08-2018-0095/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJAIM-08-2018-0095/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJAIM-08-2018-0095?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karima Lajnef & Kawther Dhifi, 2024. "Integrating Reporting Bridge, the Gap Between CSR Performance and Tax Avoidance Relationship? Insights from South Africa," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 41-59.
    2. Ahmad Yuosef Alodat & Hamzeh Al Amosh & Osamah Alorayni & Saleh F. A. Khatib, 2024. "Does corporate sustainability disclosure mitigate earnings management: empirical evidence from Jordan," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 165-174, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijaimp:ijaim-08-2018-0095. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.