Managing risk with socially responsible actions in firms involved in controversial activities and earnings management

• Encarna Guillamón-Saorín ^[3] ; Andrés Guiral ^[1] ; Belen Blanco ^[2]
  1. [1] Yonsei University

     Yonsei University

     Corea del Sur

     
  2. [2] University of Adelaide

     University of Adelaide

     Australia

     
  3. [3] Department of Business Adminsitration, Carlos III University

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• Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 47, Nº 1, 2018, págs. 1-24
• Idioma: inglés
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• Dialnet Métricas: 4 Citas
• Resumen

  • 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.