The Impact of Environmental and Social Costs Disclosure on Financial Performance Mediating by Earning Management

Khalis Hasan Yousif Al-Naser (University of Mosul, Iraq), Hosam Alden Riyadh (Universitas Muhammadiyah Yogyakarta, Indonesia), and Faeq Malallah Mahmood Albalaki (Bayan University, Iraq)
Copyright: © 2021 |Pages: 64
EISBN13: 9781799897446|DOI: 10.4018/JCIT.20210401.oa5
Teaching Case PDF Download
Open access cases are freely available for download
OnDemand PDF Download
Download link provided immediately after order completion

Abstract

This research empirically investigated the effect of environmental cost disclosure (ECD) and social cost disclosure (SCD) on financial performance (FP) mediated by earning management (EM). To achieve this purpose, a quantitative research method was employed using secondary data sources including reports of corporate social responsibility (CSR) and annual reports. Then, the data were examined using smart partial least squares (PLS). The research sample was represented by international energy corporations during the period (2016, 2017, and 2018). The study results revealed that the environmental and social costs disclosure significantly affected financial performance. This was in agreement with theories of instrumental stakeholders, legitimacy, and agency. This means that more cost on environmental and social information disclosure can generate greater opportunities for corporations.
InfoSci-OnDemand Powered Search