Understanding of ERP systems in Chinese SOEs: A case study

The impact of ERP utilization and ESG practices on earnings management—An empirical study of Taiwan

“…In pursuit of understanding the impact of ERP implementation on the quality of corporate financial reporting, the majority of studies have adopted accrual earnings management as a proxy variable for earnings quality. (Morris and Laksmana, 2010;Toumeh, 2022;Tsai et al, 2012;Chen, 2012). Morris and Laksmana (2010) examined the impact of ERP systems on earnings management, comparing levels for 143 firms in 32 industry groups that implemented ERP systems between 1994 and 2003 to levels for a control group.…”

“…Capabilities like inter-modular data sharing and form transfers greatly reduce the complexity of traditionally tedious tasks such as document operations, account processing, and verification. Chen (2012) provides evidence that enterprises with a longer history of ERP implementation encounter unique incentives and opportunities in their financial reporting decisions.…”

“…In the past, some literatures explored the relationship between ERP and earnings management (Morris and Laksmana, 2010;Toumeh, 2022;Tsai et al, 2012;Chen, 2012), ESG and earnings management (Bozzolan et al, 2015;Kolsi et al, 2023). However, few studies have incorporated ERP and ESG into the empirical model of earnings management at the same time, and explored how the two affect the company's financial reporting, so there is a gap in related research.…”