Environmental performance, carbon performance and earnings management: Empirical evidence for the European capital market

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Standard

Environmental performance, carbon performance and earnings management: Empirical evidence for the European capital market. / Velte, Patrick.
in: Corporate Social Responsibility and Environmental Management, Jahrgang 28, Nr. 1, 01.01.2021, S. 42-53.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Harvard

APA

Vancouver

Bibtex

@article{4fdbaebfb9d3471c9d8d908ec7157130,
title = "Environmental performance, carbon performance and earnings management: Empirical evidence for the European capital market",
abstract = "The purpose of this study is to examine the relationship between environmental performance, carbon performance and earnings management. This analysis includes panel regressions as empirical-quantitative (archival) research methods and looks at the 2014–2018 financial years of companies listed on the STOXX Europe 600 (1,509 firm-year observations). Environmental (carbon) performance proxies are included as independent variables, and with two earnings quality measures, accrual-based earnings management (ACC) and real earnings management (REM) as dependent variables. Our findings align with prior research on sustainability performance and indicate that environmental (carbon) performance reduces ACC but increases REM. After including Granger causality tests, we find no indications of a bidirectional relationship. This analysis makes a key contribution to prior studies as this appears to be the first on the relationship between environmental (carbon) performance and earnings management in the European capital market. The study has major implications for business practice, regulators and research. Managers might use environmental and carbon strategies for greenwashing policies as this change in earnings management can be hardly detected by other stakeholders.",
keywords = "Management studies, Carbon performance, corporate governance, earnings management, earnings quality, environmental performance, Sustainability Science",
author = "Patrick Velte",
note = "Publisher Copyright: {\textcopyright} 2020 The Author. Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.",
year = "2021",
month = jan,
day = "1",
doi = "10.1002/csr.2030",
language = "English",
volume = "28",
pages = "42--53",
journal = "Corporate Social Responsibility and Environmental Management",
issn = "1535-3958",
publisher = "John Wiley & Sons Ltd.",
number = "1",

}

RIS

TY - JOUR

T1 - Environmental performance, carbon performance and earnings management

T2 - Empirical evidence for the European capital market

AU - Velte, Patrick

N1 - Publisher Copyright: © 2020 The Author. Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.

PY - 2021/1/1

Y1 - 2021/1/1

N2 - The purpose of this study is to examine the relationship between environmental performance, carbon performance and earnings management. This analysis includes panel regressions as empirical-quantitative (archival) research methods and looks at the 2014–2018 financial years of companies listed on the STOXX Europe 600 (1,509 firm-year observations). Environmental (carbon) performance proxies are included as independent variables, and with two earnings quality measures, accrual-based earnings management (ACC) and real earnings management (REM) as dependent variables. Our findings align with prior research on sustainability performance and indicate that environmental (carbon) performance reduces ACC but increases REM. After including Granger causality tests, we find no indications of a bidirectional relationship. This analysis makes a key contribution to prior studies as this appears to be the first on the relationship between environmental (carbon) performance and earnings management in the European capital market. The study has major implications for business practice, regulators and research. Managers might use environmental and carbon strategies for greenwashing policies as this change in earnings management can be hardly detected by other stakeholders.

AB - The purpose of this study is to examine the relationship between environmental performance, carbon performance and earnings management. This analysis includes panel regressions as empirical-quantitative (archival) research methods and looks at the 2014–2018 financial years of companies listed on the STOXX Europe 600 (1,509 firm-year observations). Environmental (carbon) performance proxies are included as independent variables, and with two earnings quality measures, accrual-based earnings management (ACC) and real earnings management (REM) as dependent variables. Our findings align with prior research on sustainability performance and indicate that environmental (carbon) performance reduces ACC but increases REM. After including Granger causality tests, we find no indications of a bidirectional relationship. This analysis makes a key contribution to prior studies as this appears to be the first on the relationship between environmental (carbon) performance and earnings management in the European capital market. The study has major implications for business practice, regulators and research. Managers might use environmental and carbon strategies for greenwashing policies as this change in earnings management can be hardly detected by other stakeholders.

KW - Management studies

KW - Carbon performance

KW - corporate governance

KW - earnings management

KW - earnings quality

KW - environmental performance

KW - Sustainability Science

UR - http://www.scopus.com/inward/record.url?scp=85090457941&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/43255aa8-dada-3b39-8686-6a62b92923a9/

U2 - 10.1002/csr.2030

DO - 10.1002/csr.2030

M3 - Journal articles

VL - 28

SP - 42

EP - 53

JO - Corporate Social Responsibility and Environmental Management

JF - Corporate Social Responsibility and Environmental Management

SN - 1535-3958

IS - 1

ER -

DOI