Sustainability disclosure and earnings management

Edited book (chapter)

Velayutham, Eswaran. 2018. "Sustainability disclosure and earnings management." Boubaker, Sabri, Cumming, Douglas and Nguyen, Duc Khuong (ed.) Research Handbook of Finance and Sustainability. Cheltenham, United Kingdom. Edward Elgar Publishing. pp. 532-549
Chapter Title

Sustainability disclosure and earnings management

Book Chapter CategoryEdited book (chapter)
ERA Publisher ID1811
Book TitleResearch Handbook of Finance and Sustainability
Authors
AuthorVelayutham, Eswaran
EditorsBoubaker, Sabri, Cumming, Douglas and Nguyen, Duc Khuong
Page Range532-549
Chapter Number27
Number of Pages18
Year2018
PublisherEdward Elgar Publishing
Place of PublicationCheltenham, United Kingdom
ISBN9781786432629
9781786432636
Digital Object Identifier (DOI)https://doi.org/10.4337/9781786432636.00037
Web Address (URL)https://www.elgaronline.com/view/edcoll/9781786432629/9781786432629.00037.xml
Abstract

This chapter reviews the relationship between sustainability disclosure and earnings management. Sustainability disclosures included in this chapter are environmental, social and governmental (ESG) qualities of firms. There are two competing views of arguments that are discussed in this chapter about the relationships between sustainability disclosures and earnings management, namely, ethical orientation and opportunistic orientation. Ethical orientation predicts that ethical managers believe that socially responsible firms prefer to have long-term relationships with their stakeholders. As a result theses managers provide more value relevant information to the stakeholders to make their decisions correctly. On the other hand, managers disclose a substantial amount of sustainability information as a tool to get support from major stakeholders of firms when they engage in earnings management. Agency, stakeholder, legitimacy and signaling theories are discussed to explain the above relationships. This chapter also presents measures and methods of sustainability disclosure and earnings management. Finally, this chapter ends with addressing potential endogeneity issue, the main conclusion, and direction for further research.

Keywordssustainability disclosure; earnings management
ANZSRC Field of Research 2020350202. Finance
350107. Sustainability accounting and reporting
Byline AffiliationsSchool of Commerce
Institution of OriginUniversity of Southern Queensland
Permalink -

https://research.usq.edu.au/item/q5328/sustainability-disclosure-and-earnings-management

Log in to edit
  • 569
    total views
  • 12
    total downloads
  • 12
    views this month
  • 0
    downloads this month

Export as

Related outputs

Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?
Velayutham, Eswaran. 2023. "Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?" Sustainability. 15 (14). https://doi.org/10.3390/su151410983
Are environmental damage and export concentration the major threats for the long-run economic growth in Bangladesh?
Rahman, Mohammad Mafizur, Velayutham, Eswaran and Kashem, Mohammad Abul. 2023. "Are environmental damage and export concentration the major threats for the long-run economic growth in Bangladesh? " PLoS One. 18 (4), pp. 1-18. https://doi.org/https://doi.org/10.1371/journal.pone.0284620
Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?
Alam, Khorshed, Ali, Mohammad Afshar, Erdiaw-Kwasie, Michael, Shahiduzzaman, Md, Velayutham, Eswaran, Murray, Peter A. and Wiesner, Retha. 2022. "Impact of ICTs on Innovation and Performance of Firms: Do Start-ups, Regional Proximity and Skills Matter?" Sustainability. 14 (10), pp. 1-18. https://doi.org/10.3390/su14105801
Does tourism contribute towards zero-carbon in Australia? Evidence from ARDL modelling approach
Khanal, Avishek, Rahman, Mohammad Mafizur, Khanam, Rasheda and Velayutham, Eswaran. 2022. "Does tourism contribute towards zero-carbon in Australia? Evidence from ARDL modelling approach." Energy Strategy Reviews. 43, pp. 1-12. https://doi.org/10.1016/j.esr.2022.100907
The role of tourism in service sector employment: Do market capital, financial development and trade also play a role?
Khanal, Avishek, Rahman, Mohammad Mafizur, Khanam, Rasheda and Velayutham, Eswaran. 2022. "The role of tourism in service sector employment: Do market capital, financial development and trade also play a role?" PLoS One. 17 (8), pp. 1-18. https://doi.org/10.1371/journal.pone.0270772
Reduction of CO2 emissions: the role of renewable energy, technological innovation and export quality
Rahman, Mohammad Mafizur, Alam, Khosrul and Velayutham, Eswaran. 2022. "Reduction of CO2 emissions: the role of renewable energy, technological innovation and export quality." Energy Reports. 8, pp. 2793-2805. https://doi.org/10.1016/j.egyr.2022.01.200
Exploring the Impact of Air Transport on Economic Growth: New Evidence from Australia
Khanal, Avishek, Rahman, Mohammad Mafizur, Khanam, Rasheda and Velayutham, Eswaran. 2022. "Exploring the Impact of Air Transport on Economic Growth: New Evidence from Australia." Sustainability. 14 (18), pp. 1-17. https://doi.org/10.3390/su141811351
Economic policy uncertainty and acquisition performance: Australian evidence
Shams, Syed, Gunaskerage, Abey and Velayutham, Eswaran. 2022. "Economic policy uncertainty and acquisition performance: Australian evidence." International Review of Economics and Finance. 78, pp. 286-308. https://doi.org/10.1016/j.iref.2021.12.004
Renewable energy, energy intensity and carbon reduction: Experience of large emerging economies
Rahman, Mohammad Mafizur, Sultana, Nahid and Velayutham, Eswaran. 2022. "Renewable energy, energy intensity and carbon reduction: Experience of large emerging economies." Renewable Energy. 184, pp. 252-265. https://doi.org/10.1016/j.renene.2021.11.068
Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market
Velayutham, Eswaran and Ratnam, Vijayakumaran. 2022. "Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market." Social Responsibility Journal. 18 (4), pp. 723-743. https://doi.org/10.1108/SRJ-08-2020-0337
Socioeconomic inequalities in teenage pregnancy in Nigeria: evidence from Demographic Health Survey
Okoli, Chijioke Ifeanyi, Hajizadeh, Mohammad, Rahman, Mohammad Mafizur, Velayutham, Eswaran and Khanam, Rasheda. 2022. "Socioeconomic inequalities in teenage pregnancy in Nigeria: evidence from Demographic Health Survey." BMC Public Health. 22, pp. 1-11. https://doi.org/10.1186/s12889-022-14146-0
Corruption risk and stock market effects: evidence from the defence industry
Krishnamurti, Chandrasekhar, Pensiero, Domenico and Velayutham, Eswaran. 2021. "Corruption risk and stock market effects: evidence from the defence industry." Pacific-Basin Finance Journal. 70, pp. 1-19. https://doi.org/10.1016/j.pacfin.2021.101681
Are tourism and energy consumption linked? Evidence from Australia
Khanal, Avishek, Rahman, Mohammad Mafizur, Khanam, Rasheda and Velayutham, Eswaran. 2021. "Are tourism and energy consumption linked? Evidence from Australia." Sustainability. 13 (19), pp. 1-21. https://doi.org/10.3390/su131910800
Is industrial pollution detrimental to public health? Evidence from the world’s most industrialised countries
Rahman, Mohammad Mafizur, Alam, Khosrul and Velayutham, Eswaran. 2021. "Is industrial pollution detrimental to public health? Evidence from the world’s most industrialised countries." BMC Public Health. 21, pp. 1-11. https://doi.org/10.1186/s12889-021-11217-6
Renewable and non-renewable energy consumption-economic growth nexus: new evidence from South Asia
Rahman, Mohammad Mafizur and Velayutham, Eswaran. 2020. "Renewable and non-renewable energy consumption-economic growth nexus: new evidence from South Asia." Renewable Energy. 147 (Part 1), pp. 399-408. https://doi.org/10.1016/j.renene.2019.09.007
Drivers of corruption risk and stock market effects: evidence from the defence industry
Pensiero, Domenico, Velayutham, Eswaran and Krishnamurti, Chandrasekhar. 2017. "Drivers of corruption risk and stock market effects: evidence from the defence industry." 8th Conference on Financial Markets and Corporate Governance (FMCG)2017. Wellington, New Zealand 19 - 21 Apr 2017 United States. https://doi.org/10.2139/ssrn.2903053
Socially responsible firms and mergers and acquisitions performance: Australian evidence
Krishnamurti, Chandrasekhar, Shams, Syed, Pensiero, Domenico and Velayutham, Eswaran. 2019. "Socially responsible firms and mergers and acquisitions performance: Australian evidence." Pacific-Basin Finance Journal. 57, pp. 1-16. https://doi.org/10.1016/j.pacfin.2019.101193
The issuance of warrants in rights offerings: agency costs and signaling effects
Balachandran, Balasingham, Kanapathippillai, Sutharson, Krishnamurti, Chandrasekhar, Theobald, Michael and Velayutham, Eswaran. 2017. "The issuance of warrants in rights offerings: agency costs and signaling effects." Australian Journal of Management. 42 (4), pp. 608-636. https://doi.org/10.1177/0312896216682062
The influence of board committee structures on voluntary disclosure of greenhouse gas emissions: Australian evidence
Krishnamurti, Chandrasekhar and Velayutham, Eswaran. 2018. "The influence of board committee structures on voluntary disclosure of greenhouse gas emissions: Australian evidence." Pacific-Basin Finance Journal. 50 (S1), pp. 65-81. https://doi.org/10.1016/j.pacfin.2017.09.003
Corporate social responsibility and corruption risk: a global perspective
Krishnamurti, Chandrasekhar, Shams, Syed and Velayutham, Eswaran. 2018. "Corporate social responsibility and corruption risk: a global perspective." Journal of Contemporary Accounting and Economics. 14 (1), pp. 1-21. https://doi.org/10.1016/j.jcae.2018.02.002
Determinants of defence industry corruption risk: firm level empirical evidence using transparency international‘s anti-corruption index
Krishnamurti, Chandrasekhar, Pensiero, Domenico and Velayutham, Eswaran. 2019. "Determinants of defence industry corruption risk: firm level empirical evidence using transparency international‘s anti-corruption index." Singapore Economic Review. 64 (3), pp. 675-708. https://doi.org/10.1142/S0217590816500053
Why do Australian firms issue standalone warrants?
Balachandran, Balasingham, Kanapathipillai, Sutharson, Krishnamurti, Chandrasekhar, Theobald, Michael and Velayutham, Eswaran. 2009. "Why do Australian firms issue standalone warrants?" Balachandran, Balasingham (ed.) Inaugural Finance and Corporate Governance Conference (FCGC 2010). Melbourne, Australia 07 - 09 Apr 2010 Melbourne, Australia.
Voluntary disclosure of greenhouse gas emissions, corporate governance and earnings management: Australian evidence
Velayutham, Eswaran. 2014. Voluntary disclosure of greenhouse gas emissions, corporate governance and earnings management: Australian evidence. PhD Thesis Doctor of Philosophy. University of Southern Queensland.
Issuance of warrants in seasoned equity offerings: evidence from rights offerings
Balachandran, Balasingham, Kanapathipillai, Sutharson, Krishnamurti, Chandrasekhar, Theobald, Michael and Velayutham, Eswaran. 2010. "Issuance of warrants in seasoned equity offerings: evidence from rights offerings." Balachandran, Balasingham (ed.) Inaugural Finance and Corporate Governance Conference (FCGC 2010). Melbourne, Australia 07 - 09 Apr 2010 Melbourne, Australia.