The Governance Effect or Entrenchment Effect? Social Responsibility and Earnings Management in Chemical Industry

Abstract

Chemical industry is the industrial foundation of our country. The corporate social responsibility and earnings management are the hot topics in the field of chemical industry and accounting. This paper takes the A-share listed companies in the chemical industry disclosing social responsibility reports in Shanghai and Shenzhen stock markets in China during 2009-2015 as samples, and uses the statistical regression method to carry out empirical analysis on the effects of corporate social responsibility on earnings management. The results show that the social responsibility of the listed companies in China's chemical industry plays a governance effect on real earnings management.