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Corporate Sustainability Management, Earnings Transparency, and Chaebols
| Content Provider | MDPI |
|---|---|
| Author | Oh, Hyun Min Park, Sam Bock Ma, Hee Young |
| Copyright Year | 2020 |
| Description | 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’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. |
| Starting Page | 4222 |
| e-ISSN | 20711050 |
| DOI | 10.3390/su12104222 |
| Journal | Sustainability |
| Issue Number | 10 |
| Volume Number | 12 |
| Language | English |
| Publisher | MDPI |
| Publisher Date | 2020-05-21 |
| Access Restriction | Open |
| Subject Keyword | Sustainability Applied Ethics Corporate Sustainability Management Corporate Social Responsibility Earnings Transparency Chaebol |
| Content Type | Text |
| Resource Type | Article |
