Environmental, Social, and Governance Scores and Earnings Management in Telecommunication Companies: an International Perspective

• Autorzy: Goksel Acar , Ali Coskun
• Języki publikacji: EN

Abstrakty

EN

This study investigates the relationship between environmental, social, and governance (ESG) scores and potential tendencies to manipulate the earnings of telecommunication companies. We assumed a negative relationship between ESG scores and earnings management since the companies with higher ESG are more responsible and expected to prevent manipulation. We used ESG scores from Refinitiv as sustainability measures and discretionary accruals as the indicator of earnings management. We constructed models assuming a bilateral relationship between ESG and earnings. The results reveal that companies with higher environmental scores have higher dispersion from normal accruals; this may result for two reasons in our anticipation: they may record more accruals depending on environmental regulations and may use environmental scores to make up their earnings. Social and governance scores have a negative impact on discretionary accruals, which are insignificant. Hence companies with higher social responsiveness and strong governance produce reliable financial information. (original abstract)

Słowa kluczowe

EN

Earnings management; Settlements; Information disclosure; Telecommunication; Sustainable development

PL

Zarządzanie zyskami; Rozliczenia; Jawność informacji; Telekomunikacja; Rozwój zrównoważony

• Czasopismo: e-Finanse
• Rocznik: 2023
• Tom: 19
• Numer: nr 2
• Strony: 26--35

Twórcy

autor

Goksel Acar

• Independent Researcher, France

autor

Ali Coskun

• American University of the Middle East, Kuwait

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Identyfikatory

DOI

10.2478/fiqf-2023-0010