The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines

Shareholder value maximization is one of the main objectives of a corporation; however, the management may not always achieve such an objective that may force them to employ some earnings management practices to manage reported earnings. This study deals with the opportunistic perspective where mana...

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Main Authors: Abner, Rina A., Ferrer, Rodiel C.
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Published: Animo Repository 2019
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Online Access:https://animorepository.dlsu.edu.ph/faculty_research/3050
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Institution: De La Salle University
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spelling oai:animorepository.dlsu.edu.ph:faculty_research-40492021-11-22T07:44:14Z The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines Abner, Rina A. Ferrer, Rodiel C. Shareholder value maximization is one of the main objectives of a corporation; however, the management may not always achieve such an objective that may force them to employ some earnings management practices to manage reported earnings. This study deals with the opportunistic perspective where managers are suspected to perform some earnings management practices using cash flows from operations (CFO), production costs (PROD), and discretionary expenses (DISEXP), and further utilize their company’s corporate social responsibility (CSR) activities to shield the real earnings management (REM) performed. This study primarily investigates the role of CSR on the relationship of REM with financial performance and firm value. It examined 90 publicly listed companies in the Philippines for a five-year period from 2012 to 2016. Real earnings management is evaluated through deviations from normal operations which is termed as “abnormal” operations. Results show that when the company employs REM and uses CSR to shield such, the significant association between the two causes of improvement in the company’s financial performance. This study provides evidence of the benefits of using REM to manage company earnings. Employing REM and using CSR (to shield the earnings management performed) benefits not just the community but also serves the economic objectives of the firm. This study concludes that the public companies in the Philippines may have CSR activities on different dimensions and areas; however, the intention is not purely to fulfill their social obligations to the community but also to strategically achieve some economic objectives. Corporate social responsibility is used by the management not just to shield REM but also to improve the company’s financial performance. © 2019 by De La Salle University. 2019-06-01T07:00:00Z text https://animorepository.dlsu.edu.ph/faculty_research/3050 Faculty Research Work Animo Repository Social responsibility of business--Philippines Earnings management--Philippines Accounting Business Administration, Management, and Operations
institution De La Salle University
building De La Salle University Library
continent Asia
country Philippines
Philippines
content_provider De La Salle University Library
collection DLSU Institutional Repository
topic Social responsibility of business--Philippines
Earnings management--Philippines
Accounting
Business Administration, Management, and Operations
spellingShingle Social responsibility of business--Philippines
Earnings management--Philippines
Accounting
Business Administration, Management, and Operations
Abner, Rina A.
Ferrer, Rodiel C.
The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines
description Shareholder value maximization is one of the main objectives of a corporation; however, the management may not always achieve such an objective that may force them to employ some earnings management practices to manage reported earnings. This study deals with the opportunistic perspective where managers are suspected to perform some earnings management practices using cash flows from operations (CFO), production costs (PROD), and discretionary expenses (DISEXP), and further utilize their company’s corporate social responsibility (CSR) activities to shield the real earnings management (REM) performed. This study primarily investigates the role of CSR on the relationship of REM with financial performance and firm value. It examined 90 publicly listed companies in the Philippines for a five-year period from 2012 to 2016. Real earnings management is evaluated through deviations from normal operations which is termed as “abnormal” operations. Results show that when the company employs REM and uses CSR to shield such, the significant association between the two causes of improvement in the company’s financial performance. This study provides evidence of the benefits of using REM to manage company earnings. Employing REM and using CSR (to shield the earnings management performed) benefits not just the community but also serves the economic objectives of the firm. This study concludes that the public companies in the Philippines may have CSR activities on different dimensions and areas; however, the intention is not purely to fulfill their social obligations to the community but also to strategically achieve some economic objectives. Corporate social responsibility is used by the management not just to shield REM but also to improve the company’s financial performance. © 2019 by De La Salle University.
format text
author Abner, Rina A.
Ferrer, Rodiel C.
author_facet Abner, Rina A.
Ferrer, Rodiel C.
author_sort Abner, Rina A.
title The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines
title_short The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines
title_full The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines
title_fullStr The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines
title_full_unstemmed The role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the Philippines
title_sort role of corporate social responsibility on the link of real earnings management with financial performance and firm value of publicly listed companies in the philippines
publisher Animo Repository
publishDate 2019
url https://animorepository.dlsu.edu.ph/faculty_research/3050
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