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 journalArticle

4 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

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All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

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