Does the introduction of CSR criteria into CEO incentive pay reduce their earnings management? The case of companies listed in the SBF 120

Khenissi, Mohamed; Jahmane, Abderrahman; Hofaidhllaoui, Mahrane

doi:10.1016/j.frl.2022.102880

Cited by 10 publications

(6 citation statements)

References 37 publications

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“…Thus, in line with prior studies (Biswas et al. , 2018; Rajesh, 2020; Khenissi et al. , 2022; Kuzey et al.…”

Section: Methodssupporting

confidence: 90%

“…Biswas et al (2018), using the Thomson Reuters Eikon database (as in our study), found that board independence, board gender diversity, and the existence of a board sustainability committee were positively related to Australian firms' corporate social and environmental commitment. Thus, in line with prior studies (Biswas et al, 2018;Rajesh, 2020;Khenissi et al, 2022;Kuzey et al, 2022;Uyar et al, 2021, among others), we adopted Thomson Reuters Eikon's social sustainability model (Refinitiv, 2021). We used five dependent variables as proxies for social sustainability: one was an aggregate social sustainability indicator (Socialsust), and four were individual Socialsust indicators: workforce (Workforce), community (Community), human rights (Humanrights) and product responsibility (Productresp; Refinitiv, 2021).…”

Section: Methodsmentioning

confidence: 99%

“…We adopted Thomson Reuters Eikon's social sustainability dimensions, in line with several prior studies (Biswas et al. , 2018; Khenissi et al. , 2022; Kuzey et al.…”

Section: Methodsmentioning

confidence: 99%

“…The historical ESG data goes back to 2002 for more than 10,000 companies in 76 countries (Refinitiv, 2022b). We adopted Thomson Reuters Eikon's social sustainability dimensions, in line with several prior studies (Biswas et al, 2018;Khenissi et al, 2022;Kuzey et al, 2022;Rajesh, 2020;Uyar et al, 2021, among others). Initially, we conducted the following multiple data preprocessing phases.…”

Section: Samplementioning

confidence: 99%

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Board structure policy, board diversity and social sustainability in the logistics and transportation sector

Fernandes

Kuzey²,

Uyar³

et al. 2022

IJPDLM

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PurposeThis study aims to examine the roles of board gender and cultural diversities in driving social sustainability practices through the moderating effect of board structure policies in the logistics and transportation sector.Design/methodology/approachThe authors conducted fixed-effects regression with 2005–2019 data from Thomson Reuters Eikon.FindingsThe results showed that female directors are significant predictors of social sustainability across the four dimensions of human rights, workforce, product responsibility and community development. Additionally, directors with different cultural backgrounds (but not the workforce) are significant determinants of community development, human rights and product responsibility. Furthermore, although board structure policies positively moderate the relationship between board gender diversity and social sustainability, they fail to moderate the relationship between board cultural diversity and social sustainability.Originality/valueThe findings have crucial implications for the logistics and transportation sector's social sustainability and may help the sector align with employees' and society's expectations. The incorporation of board gender and cultural diversities into the research design was a response to calls by the European Union (EU) and the United Nations (UN) to address board configuration and stakeholders' concerns.

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“…Thus, in line with prior studies (Biswas et al. , 2018; Rajesh, 2020; Khenissi et al. , 2022; Kuzey et al.…”

Section: Methodssupporting

confidence: 90%

Section: Methodsmentioning

confidence: 99%

“…We adopted Thomson Reuters Eikon's social sustainability dimensions, in line with several prior studies (Biswas et al. , 2018; Khenissi et al. , 2022; Kuzey et al.…”

Section: Methodsmentioning

confidence: 99%

Section: Samplementioning

confidence: 99%

See 2 more Smart Citations

Board structure policy, board diversity and social sustainability in the logistics and transportation sector

Fernandes

Kuzey²,

Uyar³

et al. 2022

IJPDLM

View full text Add to dashboard Cite

show abstract

“…Their findings demonstrated strong moderating effects of CSR on the relationship between the factors of innovative accounting, and the caliber of banks' financial reporting in terms of competitive advantages. This can be further proven by Khenissi et al (2022), who examined the impact of adding CSR requirements to CEO incentive compensation on the methods used by French companies listed on the SBF 120 index (French Stock Market index) for managing profitability. They applied Kothari, Hribar and Nichols and Roychowdhury models, and their empirical research demonstrates that the level of earnings management is reduced when CSR requirements are included in compensation contracts (as measured by discretionary accruals and real earnings management).…”

Section: Literature Reviewmentioning

confidence: 99%

Earnings management model for Visegrad Group as an immanent part of creative accounting

Kováčová

Hrosova

Ďurana

et al. 2022

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Research background: Creative accounting practices do not frequently violate the law and are not considered illegal; however, accounting managers may exploit legal ambiguities to portray the company's financial standing in accordance with management preferences. Therefore, the analysis is focused on the detection of earnings management in companies operating in the Visegrad Group, which represents one of the most commonly used techniques for revealing creative accounting. Purpose of the article: The aim of the presented study is to reveal the presence of creative accounting through the detection of earnings management in the countries of the Visegrad Group and, based on the detected results, to propose a regression model of earnings management in the Visegrad Group. Methods: To reveal the use of creative accounting in the Visegrad Group, ten selected models of earnings management were applied during the period 2016?2020 to a set of 8,134 companies. The Mann-Whitney test and multiple linear regression were used to verify the existence of earnings management. These findings served as the basis for the creation of the linear regression model of earnings management in the Visegrad Group. Findings & value-added: The presence of earnings management was best captured by the Hribar and Collins model in companies operating in the Visegrad Group in the period 2016?2020. The findings also confirmed that positive discretionary accruals acquired higher values over the entire period when compared to negative discretionary accruals, confirming that companies in the surveyed group manage their profits primarily by increasing them. Therefore, we created a regression model, that can serve as a unique basis and is capable of revealing the use of earnings management in the Visegrad Group, as until now nothing like this has been implemented in these countries. In conclusion, this study offers insights for academicians and researchers on creative accounting in the selected period. Lastly, the study contributes to the existing theory by conducting new research on the earnings management determinants of the countries studied.

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Archival research on sustainability‐related executive compensation. A literature review of the status quo and future improvements

Velte

2024

Corp Soc Responsibility Env

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This literature review summarizes previous quantitative archival research on sustainability‐related executive compensation (SREC) as the overarching research method in this field. Based on stakeholder agency theory, we included 66 peer‐reviewed studies on the determinants (governance, financial, and sustainability drivers) and consequences of SREC on firm value (financial and sustainability consequences). Regarding SREC, we differentiated between the Chief Executive Officer (CEO) and the total executive level. Although we note a lower attraction of SREC research on possible determinants, there are clear indications that SREC has a positive effect on sustainability performance. In contrast to the business case argument for sustainability, this is not true for financial performance. We find major limitations and research gaps in previous studies that should be recognized in future studies (e.g., differentiation between symbolic and substantive use of SREC). Our results are mainly important for researchers, business practice and regulatory bodies.

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Does the introduction of CSR criteria into CEO incentive pay reduce their earnings management? The case of companies listed in the SBF 120

Cited by 10 publications

References 37 publications

Board structure policy, board diversity and social sustainability in the logistics and transportation sector

Board structure policy, board diversity and social sustainability in the logistics and transportation sector

Earnings management model for Visegrad Group as an immanent part of creative accounting

Archival research on sustainability‐related executive compensation. A literature review of the status quo and future improvements

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