Investigating the Relationship Between Corporate Social Responsibility and Earnings Quality in Companies Listed on the Tehran Stock Exchange
Keywords:
CSR, abnormal accruals, Earning qualityAbstract
This study aims to examine the relationship between corporate social responsibility (CSR) and earnings quality among companies listed on the Tehran Stock Exchange during 2021–2023. This applied, correlational research employed a purposive sample of 80 firms. CSR was assessed through a multidimensional composite index comprising five dimensions: corporate governance, product, employees, environment, and community. Earnings quality was measured using two models: abnormal accruals (Jones Model) and earnings management (Shivakumar Model). Data were gathered from financial statements, accompanying notes, and structured questionnaires and analyzed using SPSS and EViews software. Results revealed a significant negative relationship between CSR and earnings management indicators, suggesting that higher CSR levels reduce earnings manipulation and abnormal accruals. Additionally, CSR dimensions such as environmental responsibility, product integrity, and employee engagement had varying degrees of impact on different measures of earnings quality. However, results differed depending on the measurement model used. This study confirms that CSR enhances earnings quality, though explanatory power varies based on the measurement approach. These findings are valuable for investors, regulators, and managers aiming to improve financial transparency and reporting credibility through CSR integration.
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