RT journal article
T1 Determinants of earnings management in Spanish SMEs and its relationship with CSR: the relevance of sector life cycle stage
A1 Martínez Martínez, Domingo
A1 Andrades Peña, Francisco Javier
A1 Larrán Jorge, Manuel
A1 Muriel de los Reyes, María José
A1 Lechuga Sancho, María Paula
A2 Economía Financiera y Contabilidad
A2 Organización de Empresas
K1 Earnings management
K1 Corporate social responsibility
K1 Small and medium-sized enterprises
K1 Sector life cycle stage
AB Purpose:This paper addresses the link between earnings management (EM) and corporate social responsibility (CSR) in small and medium-sized enterprises (SMEs).Design/methodology/approach:Data were collected from 317 Spanish SMEs to perform: (1) bivariate analysis between EM, CSR and some firm-factors (i.e. size, sector, sector life cycle stage, corporate age, family ownership, profitability and financial risk); and (2) multiple regression analysis for a better understanding of EM behavior and test the influence of sector life cycle stage variable.Findings:Results emphasize the relevance of the sector life cycle stage as an explanatory factor. Firms operating in sectors that are growing or declining in terms of sales are more proactive to EM than those with consolidated sales levels. Stratified regression analysis also confirms that the stage of the industry life cycle influences the EM-CSR relationship. Only for SMEs with stable sales in maturity sectors, lower interest in EM can be significantly explained by higher CSR performance. Firms with regular sales levels show a more outstanding socially responsible commitment and are less pressured to legitimize their operational decisions and therefore show lower levels of EM involvement.Originality/value:This paper makes a twofold contribution. On the one hand, it examines the relationship between EM and CSR, focusing on SMEs' context, in which EM study could be considered incipient. On the other hand, the controversial empirical evidence on the significance and sign of EM and social responsibility link could be explained by the stage of the life cycle of the sector in which each company operates.
PB Emerald
SN 1462-6004
YR 2021
FD 2021-04-23
LK http://hdl.handle.net/10498/34225
UL http://hdl.handle.net/10498/34225
LA eng
NO Esta investigación es parte del proyecto titulado “Corporate Social Responsibility, SMEs, Region of Murcia” (ref.: 12003/PHCS/09) financiado por la FUNDACIÓN SENECA, la Agencia Regional para la Ciencia y la Tecnología, a través de la convocatoria “Ayudas para la Ejecución de Proyectos de Investigación en Humanidades y Ciencias Sociales" Seneca Program 2009.
DS Repositorio Institucional de la Universidad de Cádiz
RD 08-nov-2026