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Corporate social responsibility and earnings transparency: Evidence from Korea

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  • Hee‐Jin Park
  • Mi‐Hye Ha

Abstract

The objective of this study was to investigate the association between corporate social responsibility (CSR) and earnings transparency of Korean companies. Transparency is one of key principles of CSR activities. We will focus on accounting transparency as accounting provides fundamental financial information about a company. Our results showed that companies with superior CSR activities had higher earnings transparency. This suggests that the more a company performs CSR, the more it gets trust from market participants on earnings information. We tested whether continuance of CSR commitments could affect the level of transparency. Our results revealed found that a company with a longer period of CSR activities had higher earnings transparency. This implies that CSR activities on ongoing‐basis encourage a company to disclose its information to outside stockholders in an open way.

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  • Hee‐Jin Park & Mi‐Hye Ha, 2020. "Corporate social responsibility and earnings transparency: Evidence from Korea," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(3), pages 1498-1508, May.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:3:p:1498-1508
    DOI: 10.1002/csr.1922
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    Cited by:

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    2. Khayria Amarna & Raquel Garde Sánchez & Maria Victoria López‐Pérez & Mahmoud Marzouk, 2024. "The effect of environmental, social, and governance disclosure and real earning management on the cost of financing," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3181-3193, July.
    3. Megumi Suto & Hitoshi Takehara, 2020. "Corporate social responsibility intensity, management earnings forecast accuracy, and investor trust: Evidence from Japan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 3047-3059, November.
    4. Xu, Yong & Zhao, Xin & Wang, Jian & Xie, Peijun, 2023. "Clarifying the dispute of corporate social responsibility: Evidence from green technological innovation," Technology in Society, Elsevier, vol. 75(C).
    5. Ahmad Yuosef Alodat & Hamzeh Al Amosh & Osamah Alorayni & Saleh F. A. Khatib, 2024. "Does corporate sustainability disclosure mitigate earnings management: empirical evidence from Jordan," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 165-174, March.
    6. Xiaoli Hao & Ke Li & Shufang Wen, 2024. "The Impact of Enterprise Information Transparency on CSR: Evidence from Listed Companies in China," Journal of Information Economics, Anser Press, vol. 2(3), pages 1-21, September.
    7. Hyun Ah Kim & Nam Chul Jung, 2022. "Related Party Transactions and Corporate Social Responsibility: Evidence from Korea," Sustainability, MDPI, vol. 14(12), pages 1-19, June.
    8. Faizah Alsulami, 2024. "The Operational Risk Disclosure Threshold Effect in the Earnings Management–Sustainability Firm Performance Nexus in Saudi Arabia: A Dynamic Panel Threshold Regression Model," Sustainability, MDPI, vol. 16(10), pages 1-21, May.

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