Paper Title
CSR Disclosure And Earning Management
Abstract
The ethics of financial reporting assumes a centre stage in the corporate world through an enhanced understanding
of corporate social responsibility (CSR). This study seeks to understand the potential effects of corporate social
responsibility (CSR) on earnings management (EM). We attempt a closer investigation to re-interpret the role of CSR
disclosure in limiting the extreme practices in EM, using evidence from large top 500 Indianlisted companies in Bombay
stock exchange. The study has developed new method to measure the quality of CSR disclosure. The study findings reveal
that companies with a higher commitment to CSR activities are less likely to manage earnings through accruals and real
activities, which provide useful pointers for restructuring the reporting practices.
Keywords: Earning management, CSR, Voluntary disclosure