Managing risk with socially responsible actions in firms involved in controversial activities and earnings management

Encarna Guillamón-Saorín, Andrés Guiral, Belen Blanco

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

This study examines the impact of earnings quality on the association between corporate social responsibility and firm’s risk in firms involved in controversial activities. Based on a US sample over the 2004–2008 period, we find that involvement in controversial issues increases risk of firms despite their engagement in social responsibility activities. Additionally, we find that firms involved in controversial activities that manage their earnings upward, increase levels of risk, no matter if they engage in social responsible actions or not.

Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalRevista Espanola de Financiacion y Contabilidad
Volume47
Issue number1
DOIs
Publication statusPublished - 2018 Jan 2

Bibliographical note

Funding Information:
Andr?s Guiral acknowledges financial contribution by the Ministry of Education of the Republic of Korea [Grant Number: NRF2015S1A3A2046811] and the research support of the YSB Center for Global Business Ethics and Responsibility Encarna Guillam?n-Saor?n acknowledges financial contribution from the Spanish Ministry of Science and Innovation (SEJ2007-67582-C02-02/ECON, ECO2010-19314) and Comunidad Autonoma de Madrid (SEJ2008-00059-003. SEJ2016-00059-001). Belen Blanco acknowledges financial assistance from the Spanish Ministry of Innovation and Science (ECO2010-19314, ECO2008-06238- C02-01/ECON, SEJ2007-67582-C02-02/ECON, ECO2009-10796 and Consolider Grant #2006/04046/002). We acknowledge useful comments from participants at the European Accounting Association Annual Conference, Paris, 2013 and seminar participants at Yonsei University.

Funding Information:
Andrés Guiral acknowledges financial contribution by the Ministry of Education of the Republic of Korea [Grant Number: NRF2015S1A3A2046811] and the research support of the YSB Center for Global Business Ethics and Responsibility Encarna Guillamón-Saorín acknowledges financial contribution from the Spanish Ministry of Science and Innovation (SEJ2007-67582-C02-02/ ECON, ECO2010-19314) and Comunidad Autonoma de Madrid (SEJ2008-00059-003. SEJ2016-00059-001). Belen Blanco acknowledges financial assistance from the Spanish Ministry of Innovation and Science (ECO2010-19314, ECO2008-06238-C02-01/ECON, SEJ2007-67582-C02-02/ECON, ECO2009-10796 and Consolider Grant #2006/04046/002).

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

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