A Comprehensive Analysis of Corporate Social Responsibility Performance and Earnings Management——Regulatory Effect Based on Uncertainty of Economic Policy

Purpose/Significance The fulfillment of social responsibility by enterprises may be based on the consideration of ethical behavior and may also be considered in opportunistic behavior. In this regard, the paper starts from the way of enterprise earnings management, empirically analyzes the performance of China's listed companies in fulfilling their social responsibilities, thus showing the true purpose of corporate social responsibility performance. This not only has guiding significance for enterprises to fulfill their social responsibilities, but also has practical significance for managing unethical behaviors of enterprises.

Method/Process The paper selected 2516 companies from 2007 to 2016 Shanghai-Shenzhen A-share listed companies, a total of 16, 154 research samples to study the relationship between corporate social responsibility performance and different earnings management methods under the background of economic policy uncertainty.

Result/Conclusion The study finds that good corporate social responsibility performance can inhibit earnings management behavior. The extended research also finds that corporate social responsibility performance is a moral behavior, and as the instability of macroeconomic policies intensifies, the inhibition of corporate social responsibility performance on earnings management will be reduced.