Analysis on the Relevance of Environmental Disclosures and Earnings Management Under the Motivation of Public Pressure--Based on Heavy Pollution Listed Companies in China
This paper starts from the perspective of environmental disclosures associated with earnings management, to examine whether managements of Chinas listed companies have the motivation to reduce public pressure, through increased information disclosure in their annual reports. We take the public pressure which caused by the Songhua River and the Beijiang cadmium pollution events happened at the end of 2005 as the point of penetrating and take the oil-chemical industry together with metallurgy of iron and steel industry as the sample of listed companies. Our study shows that following the two pollution incidents, some heavy polluting listed companies undertook actions to reduce profits as well as disclose additional environmental information. This motive was the result of increased public pressure demanding additional disclosure. Management authorities in the steel industry have been aware of the alternative between environmental disclosures and earnings management. Iron and steel industries have made decisions a priority on environmental disclosures and into their overall strategy to deal with these.
Public pressure environmental disclosures earnings management substitution effect motivation
SUN Ye ZHANG Shuo YIN Cong
Professor, Business School of Jilin University, Changchun, China, 130012 Lecturer, College of Humanities & Sciences of Northeast Normal University, Changchun, China,130117 Business School of Jilin University, Changchun, China, 130012
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
531-542
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）