Title: Corporate environmental disclosure and earning management

Authors: Rayenda Khresna Brahmana; Meng Yee Tan; Hui Wei You

Addresses: Faculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, 94300 Sarawak, Malaysia ' Faculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, 94300 Sarawak, Malaysia ' Faculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, 94300 Sarawak, Malaysia

Abstract: Corporate environmental disclosure (hereafter abbreviated as CED) has developed rapidly into an important component of earning management (hereafter abbreviated as EM). Meanwhile, many parties are apprehensive of environmental issues. This study examined the relationship between CED and EM. The main focus was on 238 public listed companies, in three different industries, namely construction, technology and trading industries. The study was conducted from 2008 to 2014. CED had a positive and significant effect on the EM at 1% level of significance. This research presented two important impacts to the policy makers. Firstly, policy makers have a trade-off between choosing to act responsibly towards the environment or face EM. Second, policy makers have to relook the issue of environmental disclosure as a voluntary disclosure.

Keywords: earning management; corporate environmental disclosure; firm characteristics.

DOI: 10.1504/IJGE.2018.097874

International Journal of Green Economics, 2018 Vol.12 No.3/4, pp.308 - 321

Available online: 13 Feb 2019 *

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