This page has only limited features, please log in for full access.
This study examined whether firms’ external financing demands affect the impression management of carbon information disclosure; we also considered the moderating role of media attention in this relationship. The sample consisted of firms in eight energy-intensive industries included in the State Council of China’s “Notice on the Pilot Work of Carbon Emission Trading.” The findings are as follows: (1) A positive correlation existed between external financing demand and the impression management of carbon information disclosure; that is, compared to firms without external financing demand, those with external financing demand had greater impression management of carbon information disclosure. (2) Media attention partially weakened the effect of external financing demand on the impression management of carbon information disclosure. These findings are shown to be robust. Further test indicated that, compared to state-owned enterprises (SOEs), the effect of external financing demand on the impression management of carbon information disclosure was more pronounced in non-SOEs. Our findings enrich the literature on carbon information disclosure. They also provide ideas for governments to formulate carbon information disclosure standards, for investors to effectively identify firm’s impression management of carbon information disclosure, and for firms to better carry out carbon management.
Xiying Luo; Qiang Zhang; Shuxia Zhang. External financing demands, media attention and the impression management of carbon information disclosure. Carbon Management 2021, 1 -13.
AMA StyleXiying Luo, Qiang Zhang, Shuxia Zhang. External financing demands, media attention and the impression management of carbon information disclosure. Carbon Management. 2021; ():1-13.
Chicago/Turabian StyleXiying Luo; Qiang Zhang; Shuxia Zhang. 2021. "External financing demands, media attention and the impression management of carbon information disclosure." Carbon Management , no. : 1-13.
The purpose of this study is to examine whether for-profit firms make opportunistic use of their corporate foundations to pursue self-serving earnings objectives in China. Using data on corporate foundations and a sample of firms listed on the A-share market from 2010 to 2016, we first use the propensity score matching method to explore the effect of corporate foundations on earnings management of their founder firms. We find that the overall discretionary accruals of firms with corporate foundations are significantly higher than for those without corporate foundations. Given the ownership property with Chinese characteristics, we further find that the significant difference is driven by privately-owned firms. Then we develop a model of discretionary donation expenditures to measure the magnitude of earnings management associated with corporate foundations. We observe that firms with small profits and consecutive earnings increase record income-increasing discretionary donation expenditures. While firms that record income-decreasing discretionary donation expenditures create earnings reserves that they can use in subsequent periods to report consecutive earnings increases. The results demonstrate that the visibly ethical behavior of establishing corporate foundations does not necessarily represent the consistent embodiment of corporate social responsibility (CSR), but can be regarded as corporate hypocrisy with self-interest embedded in benevolence.
Liping Xu; Shuxia Zhang; Ning Liu; Li Chen. Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms. Sustainability 2018, 10, 3991 .
AMA StyleLiping Xu, Shuxia Zhang, Ning Liu, Li Chen. Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms. Sustainability. 2018; 10 (11):3991.
Chicago/Turabian StyleLiping Xu; Shuxia Zhang; Ning Liu; Li Chen. 2018. "Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms." Sustainability 10, no. 11: 3991.