Corporate Social Responsibility and Information Effect of Future Earnings
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This study hypothesized that Corporate Social Responsibility(Hereafter ‘CSR’) activities would be a positive relation with the information effects of future earnings, and empirically analyzed using the future earnings response coefficient (FERC) model of Tucker and Zarowin (2006). The hypothesis of this study is based on mixed results between CSR activity and earnings quality. The empirical results show that there is a positive relationship between CSR activity and information effects of future earnings. This is consistent with controlling the effects of the omitted variables. It is also consistent with controlling the size effect. Based on these results, CSR activities can be interpreted as enhancing the information effect of future earnings. After dividing the group into companies with good corporate governance and companies with weak corporate governance, this study additionally analyzed the effect of CSR activities on the information effect of future earnings. The results of the analysis showed that CSR activity increased the information effect of future earnings in both the group with good corporate governance and the group with weak corporate governance. Taken together, investors believe that CSR activities are positive, suggesting that CSR activities are an incentive to increase value relevance of future earnings. This study contributes to the finding that there is a complementary relationship between CSR activity and earnings quality in the mixed situation of the relationship between CSR activity and the quality of accounting information. In addition, this study is expected to provide implications that corporate social responsibility may affect stock prices. In this regard, the results of this study are expected to be useful data for investor’s investment decision making and policy maker’s policy making. In addition, this study contributes to the fact that Korean companies need to strategically utilize CSR activities. This study has limitations that do not measure implied CSR activity.
Abstract
This study hypothesized that Corporate Social Responsibility(Hereafter ‘CSR’) activities would be a positive relation with the information effects of future earnings, and empirically analyzed using the future earnings response coefficient (FERC) model of Tucker and Zarowin (2006). The hypothesis of this study is based on mixed results between CSR activity and earnings quality. The empirical results show that there is a positive relationship between CSR activity and information effects of future earnings. This is consistent with controlling the effects of the omitted variables. It is also consistent with controlling the size effect. Based on these results, CSR activities can be interpreted as enhancing the information effect of future earnings. After dividing the group into companies with good corporate governance and companies with weak corporate governance, this study additionally analyzed the effect of CSR activities on the information effect of future earnings. The results of the analysis showed that CSR activity increased the information effect of future earnings in both the group with good corporate governance and the group with weak corporate governance. Taken together, investors believe that CSR activities are positive, suggesting that CSR activities are an incentive to increase value relevance of future earnings. This study contributes to the finding that there is a complementary relationship between CSR activity and earnings quality in the mixed situation of the relationship between CSR activity and the quality of accounting information. In addition, this study is expected to provide implications that corporate social responsibility may affect stock prices. In this regard, the results of this study are expected to be useful data for investor’s investment decision making and policy maker’s policy making. In addition, this study contributes to the fact that Korean companies need to strategically utilize CSR activities. This study has limitations that do not measure implied CSR activity.
참고문헌 (28)
- Alsaadi, A., "Corporate Social Responsibility, Shariah-Compliance, and Earnings Quality", Journal of Financial Services Research, 51(2) (2017)
- Bhattacharya, N., "Direct and Mediated Associations among Earnings Quality, Information Asymmetry, and the Cost of Equity", The Accounting Review, 87(2) (2012)
- Chih, H. L., "Corporate Social Responsibility, Investor Protection, and Earnings Management：Some International Evidence", Journal of Business Ethics, 79 (2008)
- Cho, S. Y., "Corporate social responsibility performance and information asymmetry", Journal of Accounting and Public Policy, 32(1) (2013)
- Choi, J. H., "Do Management EPS forecasts allow returns to reflect future earnings? Implication for the continuation of management’s quarterly earnings guidance", Review of Accounting Studies, 16(1) (2011)
- Collins, D. W., "Lack of timeliness and noise as explanations for the low contemporaneous return-earnings association", Journal of Accounting and Economics, 18(3) (1994)
- Dichev, I., "Matching and the Changing Properties of Accounting Earnings over the Last 40 Years", The Accounting Review, 83(6) (2008)
- Francis, J., "Voluntary Disclosure, Earnings Quality, and Cost of Capital", Journal of Accounting Research, 46(1) (2008)
- Gelb, D., "Corporate Disclosure Policy and the Informativeness of Stock Prices", Review of Accounting Studies, 7(1) (2002)
- Haw, I. M., "Investor protection and price informativeness about future earnings： international evidence", Review of Accounting Studies, 17(2) (2012)
- Kim, Y. T., "Is Earnings Quality Associated with Corporate Social Responsibility?", The Accounting Review, 87(3) (2012)
- Lev, B., "Corporate earnings：facts and fiction", Journal of Economic Perspectives, 17(2) (2003)
- Lundholm, R., "Bringing the Future Forward：The Effect of Disclosure on the Returns-Earnings Relation", Journal of Accounting Research, 40(3) (2002)
- Prior, D., "Are Socially Responsible Managers Really Ethical? Exploring the Relationship Between Earnings Management and Corporate Social Responsibility", Corporate Governance, 16(3) (2008)
- Torugsa, N. A., "Proactive CSR：An empirical analysis of the role of its economic, social and environmental dimensions on the association between capabilities and performance", Journal of Business Ethics, 115(2) (2013)
- Tucker, J. W., "Does Income Smoothing Improve Earnings Informativeness", The Accounting Review, 81(1) (2006)
- Uhlaner, L. M., "Beyond size：Predicting engagement in environmental management practices of Dutch SMEs", Journal of Business Ethics, 109(4) (2012)
- Van Gils, A., "Social issues in the family enterprise", Family Business Review, 27 (2014)
- Yip, E., "Corporate social responsibility reporting and earnings management：The role of political costs", Australasian Accounting Business and Finance Journal, 5(3) (2011)
- 강윤식, "기업의 사회적 책임, 지배구조 및 기업가치", 한국증권학회지, 40(5), pp.713~748 (2011), 한국증권학회
- 권수영, "발생액의 질이 미래이익에 대한 주가 정보성에 미치는 영향", 경영학연구, 41(1), pp.139~169 (2012), 한국경영학회
- 백원선, "수익비용대응원칙과 이익의 질", 회계학연구, 36(2), pp.101~127 (2011), 한국회계학회
- 이현주, "수익비용대응 수준과 미래이익의 정보효과", 회계ㆍ세무와 감사 연구, 56(2), pp.37~63 (2014), 한국공인회계사회[DOI]
- 정현욱, "비정상감사시간이 미래이익의 주가 정보성에 미치는 영향", 세무와회계저널, 16(4), pp.9~34 (2015), 한국세무학회
- 정현욱, "산업 내 경쟁정도와 미래이익반응계수", 회계ㆍ세무와 감사 연구, 58(2), pp.167~192 (2016), 한국공인회계사회
- 정현욱, "부채특성이 미래이익반응계수에 미치는 영향", 기업경영연구, 21(4), pp.41~61 (2014), 한국기업경영학회
- 최종서, "이익유연화가 회계이익 및 현금흐름의 정보가치에미치는 효과", 회계ㆍ세무와 감사 연구, (40) (2004), 한국공인회계사회
- 최현정, "기업의 사회적 책임활동과 회계투명성간의 관계", 회계학연구, 38(1), pp.135~171 (2013), 한국회계학회