Corporate Sustainability Management, Earnings Transparency, and Chaebols
| Autor: | Hee Young Ma, Sam Bock Park, Hyun Min Oh |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Geography
Planning and Development education lcsh:TJ807-830 lcsh:Renewable energy sources Accounting Chaebol Management Monitoring Policy and Law 0502 economics and business health care economics and organizations lcsh:Environmental sciences lcsh:GE1-350 050208 finance corporate social responsibility Earnings Renewable Energy Sustainability and the Environment business.industry Corporate governance lcsh:Environmental effects of industries and plants 05 social sciences Transparency (behavior) corporate sustainability management lcsh:TD194-195 Corporate sustainability Earnings management earnings transparency chaebol Sustainability Corporate social responsibility Business 050203 business & management |
| Zdroj: | Sustainability, Vol 12, Iss 4222, p 4222 (2020) Sustainability Volume 12 Issue 10 |
| ISSN: | 2071-1050 |
| Popis: | This study examines the association of corporate sustainability management with earnings transparency. Based on previous studies that indicate that sustainability management activities reduce earnings management and corporate risk and increase a firm&rsquo s value, this study predicts that the firms with effective sustainability management will have a high earnings transparency. In addition, this study examines the differential effect of corporate sustainability management on earnings transparency according to whether or not a firm belongs to a chaebol. We use Environmental, Social, and Governance (ESG) ratings of the Korean Corporate Governance Service (KCGS) as a proxy for corporate sustainability management and apply the method of Cheng and Subramanyam (2008) to measure earnings transparency. The empirical results show that there is a significant positive relationship between corporate sustainability management and earnings transparency. Furthermore, the association between corporate sustainability management and earnings transparency is more negative for firms belonging to a chaebol. These results indirectly show that firms belonging to a chaebol have a lower level of information asymmetry than firms not belonging to a chaebol. This study focuses on corporate sustainability management as a determinant of earnings transparency, and is useful for examining the effect of belonging to a chaebol on the relationship between sustainability management and earnings transparency. Our results are expected to provide important implications not only for managers, but also for investors and regulators. |
| Databáze: | OpenAIRE |
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