Accounting Conservatism and Corporate Social ResponsibilityCitation formats

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Accounting Conservatism and Corporate Social Responsibility. / Anagnostopoulou, Seraina; Tsekrekos, Andrianos; Voulgaris, George.

In: The British Accounting Review, 26.08.2020.

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Anagnostopoulou S, Tsekrekos A, Voulgaris G. Accounting Conservatism and Corporate Social Responsibility. The British Accounting Review. 2020 Aug 26. https://doi.org/10.1016/j.bar.2020.100942

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Anagnostopoulou, Seraina ; Tsekrekos, Andrianos ; Voulgaris, George. / Accounting Conservatism and Corporate Social Responsibility. In: The British Accounting Review. 2020.

Bibtex

@article{76b17da7e3ba4ccbb6aa9c2a56df12f0,
title = "Accounting Conservatism and Corporate Social Responsibility",
abstract = "We examine the association between accounting conservatism, expressed in the form of asymmetric timeliness of recognition of economic gains and losses, and corporate social responsibility (CSR). We provide evidence that, under unfavorable macroeconomic conditions and financial constraints, as well as increased levels of outside pressure from debtholders and equity holders, catering for capital providers through conservative reporting becomes a managerial priority over engagement in CSR. Our results overall indicate that, for our whole sample period (starting in the early 2000s), higher levels of conservatism are negatively associated with a CSR orientation shown by firms; however, our analysis also indicates a significant reversing trend regarding the effect of conservatism on CSR, coinciding with the post-financial-crisis period. The findings are robust to a number of specifications and tests, including the use of an instrumental variable approach explicitly addressing endogeneity biases related to reverse causality concerns. Our study suggests that, under monitoring pressure from financial stakeholders, firms prioritize commitment to accounting conservatism over the needs of non-financial stakeholders and other interest groups.",
author = "Seraina Anagnostopoulou and Andrianos Tsekrekos and George Voulgaris",
year = "2020",
month = aug,
day = "26",
doi = "10.1016/j.bar.2020.100942",
language = "English",
journal = "The British Accounting Review",
issn = "0890-8389",
publisher = "Elsevier BV",

}

RIS

TY - JOUR

T1 - Accounting Conservatism and Corporate Social Responsibility

AU - Anagnostopoulou, Seraina

AU - Tsekrekos, Andrianos

AU - Voulgaris, George

PY - 2020/8/26

Y1 - 2020/8/26

N2 - We examine the association between accounting conservatism, expressed in the form of asymmetric timeliness of recognition of economic gains and losses, and corporate social responsibility (CSR). We provide evidence that, under unfavorable macroeconomic conditions and financial constraints, as well as increased levels of outside pressure from debtholders and equity holders, catering for capital providers through conservative reporting becomes a managerial priority over engagement in CSR. Our results overall indicate that, for our whole sample period (starting in the early 2000s), higher levels of conservatism are negatively associated with a CSR orientation shown by firms; however, our analysis also indicates a significant reversing trend regarding the effect of conservatism on CSR, coinciding with the post-financial-crisis period. The findings are robust to a number of specifications and tests, including the use of an instrumental variable approach explicitly addressing endogeneity biases related to reverse causality concerns. Our study suggests that, under monitoring pressure from financial stakeholders, firms prioritize commitment to accounting conservatism over the needs of non-financial stakeholders and other interest groups.

AB - We examine the association between accounting conservatism, expressed in the form of asymmetric timeliness of recognition of economic gains and losses, and corporate social responsibility (CSR). We provide evidence that, under unfavorable macroeconomic conditions and financial constraints, as well as increased levels of outside pressure from debtholders and equity holders, catering for capital providers through conservative reporting becomes a managerial priority over engagement in CSR. Our results overall indicate that, for our whole sample period (starting in the early 2000s), higher levels of conservatism are negatively associated with a CSR orientation shown by firms; however, our analysis also indicates a significant reversing trend regarding the effect of conservatism on CSR, coinciding with the post-financial-crisis period. The findings are robust to a number of specifications and tests, including the use of an instrumental variable approach explicitly addressing endogeneity biases related to reverse causality concerns. Our study suggests that, under monitoring pressure from financial stakeholders, firms prioritize commitment to accounting conservatism over the needs of non-financial stakeholders and other interest groups.

U2 - 10.1016/j.bar.2020.100942

DO - 10.1016/j.bar.2020.100942

M3 - Article

JO - The British Accounting Review

JF - The British Accounting Review

SN - 0890-8389

ER -