Two Decades of Research on the Relation of CSR With Earnings Management: Mapping Heterogeneity and Future AGENDA

This literature review uses a blend of systematic literature review and thematic analysis to explore the relationship between corporate social responsibility (CSR) and earnings management (EM). The literature review search is guided by PRISMA (Preferred Reporting Items for Systematic Reviews and Meta‐Analyses) and analyses 94 Scopus‐indexed articles ranging from 2008 to 2023. The paper reveals the most influential articles and authors, leading countries, and journals. The paper also comprehends that research on this topic needs to be clarified, with some studies suggesting a positive relationship between CSR practices and EM while others point to a negative correlation. Then, again, other research indicates mixed findings, suggesting this relationship might be more complicated and context‐dependent. In addition to highlighting the significance of considering contextual factors, the review attempts to identify the sources of heterogeneity in these findings. We also present an explanatory framework primarily ignored in previous studies to understand the sources of heterogeneity. The review also points out gaps in existing literature and suggests avenues for future research. In summary, this review offers valuable insight for scholars and professionals who want to navigate the dynamic interplay of CSR and EM in the contemporary business world.