MODERATINGEFFECT OF EARNINGS MANAGEMENT ON RELATIONSHIPBETWEEN CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE
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Author:
ASMA JAVED
Citable URI :
https://vspace.vu.edu.pk/detail.aspx?id=356
Publisher :
Virtual University
Date Issued:
7/5/2020 12:00:00 AM
Abstract
This study is an empirical substantiation of earnings management as a moderating variable on
relationship involving corporate social responsibility and financial performance. The study is
conducted by taking sample of 80 firms listed on PSX selected through stratified random
sampling for period of 2013 to 2017. Data is analyzed by multiple linear regression, descriptive
statistics and moderated regression analysis through SPSS. Study provides evidence that CSR
exerts positive impact on ROA and price to earnings ratio. Earnings management intervenes in
the relationship between the CSR and ROA, then significant impact of CSR on ROA decreases.
Whereas earnings management does not moderate the relationship relating CSR and PE ratio,
which is the market measure of financial performance. Market measures are not directly
influenced by CSR and earnings management activities. The results suggested that when higher
earnings management initiates CSR practices, these further worsen the FP, so stakeholders should
be cautious about these activities
URI :
https://vspace.vu.edu.pk/details.aspx?id=356
Citation:
Javed, A(2019),MODERATINGEFFECT OF EARNINGS MANAGEMENT ON RELATIONSHIPBETWEEN CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE,VIRTUAL UNIVERSITY OF PAKISTAN .(Lahore,Pakistan).
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Final Version
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