Sun, Nan and Salama, Aly and Hussainey, Khaled and Habbash, Murya (2010) Corporate environmental disclosure, corporate governance and earnings management. Managerial Auditing Journal, 25 (7). pp. 679-700. ISSN 0268-6902Full text not available from this repository.
Purpose – The purpose of this paper is to examine the association between corporate environmental disclosure (CED) and earnings management (EM) and the impact of corporate governance (CG) mechanisms on that association. Design/methodology/approach – The paper uses performance‐matched discretionary accruals (DA) as a measure of EM. The paper also uses ordinary least square regression with robust standard errors to examine the association between CED and EM for a sample of 245 UK non‐financial firms for the financial year ended on March 2007. Three different theoretical frameworks are used to identify the expected association between CER and EM. These include: signalling, agency and stakeholder‐legitimacy theories. Findings – The paper finds no significant statistical association between various measures of DA and environmental disclosure. The paper also finds that some CG attributes affect the relationship between CER and EM. Practical implications – The result suggests that UK corporate managers are not using environmental disclosure as a technique to reduce the probability that public policy actions will be taken against their companies. Originality/value – Since most empirical research is limited to the US setting, this paper provides a novel contribution to the existing literature, as one of the first to examine this issue in the UK.
|Additional Information:||Environmental management, Information disclosure, Earnings, Corporate governance, United Kingdom|
|Subjects:||H Social Sciences > H Social Sciences (General)|
|Divisions:||Schools and Research Institutes > Business School > Business and Human Resource Management|
|Research Priority Areas:||Applied Business Research|
|Depositing User:||Anne Pengelly|
|Date Deposited:||05 May 2015 15:31|
|Last Modified:||05 May 2015 15:31|