FINANCIAL REPORTS QUALITY AND CORPORATE SOCIAL RESPONSIBILITY

Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 3

Abstract

This study explores the correlation between CSR and the quality of financial reports according to Stewardship Theory for 100 Best Corporate Citizens. The empirical results of the overall samples indicated that by practicing CSR, companies can effectively reduce their level of earnings management, providing quality financial reports. The cluster sampling results show that CSR has a mediating effect, reducing the direct effects of corporate governance board structures on the quality of financial reports. This study considers the emergence of Stewardship Theory compensates for the defects and deficiencies of agency theory in explaining the behaviors of managers. This study offers deeper insights to policy makers and investors to understand the association between company CSR performance and their financial reporting quality. The results suggest that company stakeholders should pay more attention when considering the influence of company CSR investment performance.

Authors and Affiliations

Hsiangtsai Chiang*| Feng Chia University, Taiwan, Li-Jen He| Asia University, Taiwan, Cang-Fu Shiao| Feng Chia University, Taiwan

Keywords

Related Articles

Impact of Heavy Taxation on Israel During Solomonic Era: Implications for Nigerian Tax System

Over time, the tax systems have been a major source of revenue generation for several governments. Its history dates back to Bible times. Tax therefore becomes the civic responsibility of individuals and corporate organi...

FOREIGN DIRECT INVESTMENT DECISIONS INTO CHINA AND INDIA

We investigate the foreign direct investment projects of the multinational companies into the two major BRIC countries: India and China. Our results indicate that wage levels and country population and GDP growth are the...

STOCK MARKET INTEGRATION IN WEST AFRICAN MONETARY ZONE: A LINEAR AND NONLINEAR COINTEGRATION APPROACH

The capital market plays a significant role in the development of an economy and hence an important determinant of regionalisation and single currency area formation. Stock and other capital markets have been found to pr...

TRADE FLOWS AND EXCHANGE RATE SHOCKS IN NIGERIA: AN EMPIRICAL RESULT

In this paper, we explored the J-curve effect based on Nigerian data by adopting the vector error correction methodology. The results of the study indicated a cyclical feedback between the trade balance and the real exch...

The Arabo-Mediterranean momentum strategies

This paper documents strong evidence for the robust profitability of the momentum strategies inter and intra five Arabo-Mediterranean stocks’ markets. Between 1998 and 2007 we find that the related stocks’ returns exhibi...

Download PDF file
  • EP ID EP2179
  • DOI -
  • Views 452
  • Downloads 36

How To Cite

Hsiangtsai Chiang*, Li-Jen He, Cang-Fu Shiao (2015). FINANCIAL REPORTS QUALITY AND CORPORATE SOCIAL RESPONSIBILITY. Asian Economic and Financial Review, 5(3), 453-467. https://europub.co.uk/articles/-A-2179