Does CSR reduce financial distress? Moderating effect of firm characteristics, auditor characteristics, and covid-19

Rahman, Md Jahidur; Zhu, Hongtao; Chen, Sihe

doi:10.1108/ijaim-04-2023-0081

Cited by 3 publications

References 73 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Do cultural differences moderate the relationship between CSR and earnings quality: common law evidence pre and during COVID-19 crisis

Lajnef,

Ellouz

2024

IJAIM

View full text Add to dashboard Cite

Purpose This paper aims to describe the role of corporate social performance as a potential mechanism for reducing earnings management. This paper contributes to the existing literature by addressing the moderator effects of national culture on the relationship between CSR and earnings management. Design/methodology/approach This study investigates the moderating impact of Hofstede’s cultural dimensions on the association between corporate social responsibility (CSR) and earnings management. The data set covers 71,893 firm-year observations spanning 2006–2022 and involving 4,229 firms listed in common law countries. Findings The result confirms that corporate social performance reduces the use of real earnings management and controls the change of method AEM to REM method. When testing the indirect effect, the results show that cultural dimensions moderate the relationship between CSR and earnings management. These findings have many theoretical and practical implications for researchers, investors and decision-makers. Originality/value This paper contributes substantially to extant literature by comprehensively exploring the moderating influence of national cultures on the intricate nexus between CSR and earnings management, encompassing the pre- and post-COVID-19 periods. The implications of these findings extend to researchers, investors and policymakers, offering valuable insights for informed decision-making.

show abstract

Do cultural differences moderate the relationship between CSR and earnings quality: common law evidence pre and during COVID-19 crisis

Lajnef,

Ellouz

2024

IJAIM

View full text Add to dashboard Cite

show abstract

Manager sentiment, policy uncertainty, ESG disclosure and firm performance: a large language model in corporate landscape

Sahu,

Debata,

Dash

2024

IJAIM

View full text Add to dashboard Cite

Purpose This study aims to examine the impact of manager sentiment on the firm performance (FP) of Indian-listed nonfinancial firms. Further, it endeavors to investigate the moderating role of economic policy uncertainty (EPU) and environment, social and governance (ESG) transparency in this relationship. Design/methodology/approach A noble manager sentiment is introduced using FinBERT, a bidirectional encoder representation from a transformers (BERT)-type large language model. Using this deep learning-based natural language processing approach implemented through a Python-generated algorithm, this study constructs a manager sentiment for each firm and year based on the management discussions and analysis (MD&A) report. This research uses the system GMM to examine how manager sentiment affects FP. Findings The empirical results suggest that managers’ optimistic outlook in MD&A corporate disclosure sections tends to present higher performance. This positive association remains consistent after several robustness checks – using propensity score matching and instrumental variable approach to address further endogeneity, using alternative proxies of manager sentiment and FP and conducting subsample analysis based on financial constraints. Furthermore, the authors observe that the relationship is more pronounced for ESG-disclosed firms and during the low EPU. Practical implications The results demonstrate that the manager sentiment strongly predicts FP. Thus, this study may provide valuable insight for academics, practitioners, investors, corporates and policymakers. Originality/value To the best of the authors’ knowledge, this is the first study to predict FP by using FinBERT-based managerial sentiment, particularly in an emerging market context.

show abstract

Neural Network-Based Financial Distress Prediction for Listed Companies in China

Kong,

Zhu,

et al. 2023

Proceedings of the 2023 4th International Conference on Big Data Economy and Information Management

View full text Add to dashboard Cite

Does CSR reduce financial distress? Moderating effect of firm characteristics, auditor characteristics, and covid-19

Cited by 3 publications

References 73 publications

Do cultural differences moderate the relationship between CSR and earnings quality: common law evidence pre and during COVID-19 crisis

Do cultural differences moderate the relationship between CSR and earnings quality: common law evidence pre and during COVID-19 crisis

Manager sentiment, policy uncertainty, ESG disclosure and firm performance: a large language model in corporate landscape

Neural Network-Based Financial Distress Prediction for Listed Companies in China

Contact Info

Product

Resources

About