• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1073-1081
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• 2021

When firms have higher environmental performance, they can provide sustainable business that allows firms to build the value of credibility and ethics, higher reputation, higher productivity, and lower costs. The advantages of environmental responsibilities help firms to maintain their earnings level over a long-term period. This research aims to examine the effect of environmental performance on earnings persistence. Research samples include 413 manufacturing firms-years listed in the Indonesian Stock Exchange and the PROPER evaluation in 2013-2019. Environmental performance is measured by PROPER evaluation rating. The result shows that environmental performance has a positive effect on earnings persistence. The advantage of environmental responsibilities allows firms to enjoy performance sustainability and persistence in a long-term period, not only periodically. Also, the positive effect of environmental performance on earnings persistence occurs more in the environmentally sensitive industry than non-sensitive ones. Since an environmentally-sensitive industry brings more environmental damage, higher environmental performance is more valuable to provide sustainability. This research has limitations to use all the Indonesian Stock Exchange-listed firms since not all firms participate in the PROPER evaluation. This research implies firms' management should maintain earnings persistence and sustainability by implementing higher-quality environmental responsibility, especially for firms in an environmentally-sensitive industry.

• Journal of Distribution Science
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• v.17 no.9
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• pp.103-115
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• 2019

Purpose - We attempted to verify the level of ethics of firms achieving sustainable management from the aspect of reliability of accounting information. Specifically, we evaluated the effects of sustainable management on accruals-based earning management (AEM) and real earning management (REM). Research design, data, and methodology - We employed the issuance of sustainability reports in addition to the indices of social responsibility and environmental-management evaluation of the Korea Corporate Governance Service in order to measure sustainability management. AEM was measured using discretionary accruals and calculated using the operant Jones model. Specifically, REM was measured using the methodology suggested by prior studies. The sample of our study consisted of 1,418 years of public listed firms in the Korea Stock Exchange from 2015 to 2017. Results - First, the level of AEM in firms achieving sustainable management was lower than the other. Second, the level of REM in these firms was lower than the other. Nonetheless, another analysis showed that the level of governance control affects the level of earning management and that the levels of AEM and REM were generally lower in firms achieving sustainable management than the others. Conclusions - We expected that firms achieving external ethics tend to have a higher level of internal ethics than others.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.903-909
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• 2021

The relationship between corporate social responsibility (CSR) and earnings management is still a debate. Several previous studies showed that CSR is a determinant of earnings management. Meanwhile, others revealed the reverse. Therefore, this study aims to investigate the effect of CSR disclosure on earnings management and the effect of earnings management on CSR disclosure. This study was conducted with mining companies listed on the Indonesia Stock Exchange (IDX) in the 2016-2019 period. The research data was analyzed using multiple linear regression analysis. The data is obtained from financial statements, annual reports, and sustainability reports. The results reveal that there is a positive relationship between CSR disclosure and earnings management. This study also shows that the relationship model of CSR disclosure and earnings management is recursive. This finding implies that CSR disclosure is a tool used by management to cover up unethical actions from stakeholders. These results verify the agency theory and opportunist hypothesis regarding the relationship between CSR and earnings management. The novelty of this study lies in highlighting the recursive model of the relationship between CSR and earnings management.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.3
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• pp.29-40
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• 2020

The research aims to explore the links among corporate governance, corporate social responsibility, and earnings management, considering vital roles of each component in Vietnam. There were 500 questionnaires provided to the targeted enterprises, where there were 150 enterprises in Ho Chi Minh Stock Exchange, 150 enterprises in Hanoi Stock Exchange, and 200 enterprises in the unlisted public company market. Of the distributed questionnaires, only 289 replies offered needed information for analyses. The data derived from these firms was based on their annual or sustainability statements that were retrieved from the websites. This research used a six-year rolling window to calculate earnings management. To compute that variable, lagged year information was included, so the data from 2011 to 2017 was needed to collect. The empirical results show that corporate governance mechanism is a significant moderation in the positive link between good corporate social responsibility and earnings management. Furthermore, corporate social responsibility and earnings management also play mediating roles in the associations among corporate governance, corporate social responsibility, and earnings management. This project recommends that corporate governance mechanism is an essential driver of the managerial behaviors in social responsibility and ethical accounting practices, which are in turn mediators in the joint research model.

• Management & Information Systems Review
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• v.38 no.3
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• pp.187-210
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• 2019

Companies shall hold social responsibility as a member of the social community. Corporate social responsibility uses corporate resources, yet it plays important roles in reducing social imbalance. Their responsibilities are highly associated with the corporate sustainability. Many earlier studies on the association between corporate social responsibility and corporate sustainability have been attempted. Yet it should be mentioned that they do not show a variety of realities as linearity between dependent variables and independent variables were assumed. Thus, this study aims to analyze Markov blanket, a node of minimum descriptive variables that relieve a rigid assumption among variables and affect corporate sustainability by using Bayesian network. Sensitivity analysis was used to elicit how other variables affect by reflecting the complex reality when real factors are changed. As an important result of this study, the firm's future earnings sustainability is naturally related to operating earnings, and as the corporate governance structure is sound, the firm is able to steadily fulfill its social responsibility. However, the fact that the size of a company is large does not mean that it is in good compliance with corporate laws. This would not be unrelated to the fact that many of today's companies are not complying with the law and are suffering social condemnation. Results from this study will serve as a useful analytic tool when investors and creditors showing interests in corporate sustainability for assessing the value of companies and making investment decisions. Moreover, they can be used as references for relevant agency supervising capital markets to establish or improve appropriate institutions aimed at improving corporate sustainability.

• The Journal of Economics, Marketing and Management
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• v.4 no.4
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• pp.17-24
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• 2016

The purpose of the present study is to investigate the relationship between Management bonuses and earnings stability of the listed companies on the Tehran Stock Exchange (TSE). The population includes 94 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE's website from 2009 to 2016. The results of multiple linear regression analysis show that there is a significant relationship between Management bonuses and earnings stability. The aim of this study primarily investigating the relationship between earnings stability and management bonus. In the case of this target, the next goal of this research is to develop a proposal for legislation in the domain of capital market, students and faculty as well as accounting information users provide research interests. Observations show many companies despite the decline in profitability, bonus managers to continually pay. Increase in listed companies Stock Exchange as well as the importance of communication between earnings quality and bonus managers in Financial Accounting the authors created an incentive to research about this relationship do. The results of this research could be the development of literature done in the past. Thus, more knowledge about the issue of sustainability and its relation to bonus managers the users of accounting information, accounting courses provide students and faculty.

• Journal of Digital Convergence
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• v.19 no.11
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• pp.113-119
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• 2021

This study compared business performance and earnings quality before and after the COVID-19 pandemic for information and communication companies whose sales increased due to the impact of the COVID-19 pandemic. For this, 4 indicators of ROA, growth potential, liquidity, and stability are used for business performance, and for earnings quality, the standard deviation of the residuals measured by the Dechow and Dichev(2002) model and Francis et al.(2005) model was used. As a result of the analysis, ROA, a representative business performance indicator, increased after xthe period compared to the period before the pandemic, but liquidity was rather deteriorated. As for the quality of earnings, it was confirmed that earnings sustainability is maintained in the post-pandemic period compared to the previous period, similar to ROA. Overall, the profit level and earnings quality of information and communications companies seemed to be improving, while liquidity was deteriorating. This confirms that companies that have overcome the immediate crisis are not ready to pay off their debts right away. Therefore, it suggests that companies need restructuring to reduce their increased debt from the time the COVID-19 subsides.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.18 no.4
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• pp.1090-1100
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• 2024

While the incorporating ESG indicator is recognized as crucial for sustainability and increased firm value, inconsistent disclosure of ESG data and vague assessment standards have been key challenges. To address these issues, this study proposes an ambiguous text-based automated ESG rating strategy. Earnings Call Transcript data were classified as E, S, or G using the Refinitiv-Sustainable Leadership Monitor's over 450 metrics. The study employed advanced natural language processing techniques such as BERT, RoBERTa, ALBERT, FinBERT, and ELECTRA models to precisely classify ESG documents. In addition, the authors computed the average predicted probabilities for each label, providing a means to identify the relative significance of different ESG factors. The results of experiments demonstrated the capability of the proposed methodology in enhancing ESG assessment criteria established by various rating agencies and highlighted that companies primarily focus on governance factors. In other words, companies were making efforts to strengthen their governance framework. In conclusion, this framework enables sustainable and responsible business by providing insight into the ESG information contained in Earnings Call Transcript data.

• The Journal of the Korea Contents Association
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• v.19 no.5
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• pp.280-286
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• 2019

This study first examines whether the matching principle reduces information asymmetry and verifies the effect on earnings sustainability and information asymmetry. In the presence of information asymmetry between managers and information users, managers can reduce information asymmetry by increasing the quality of earnings. Information asymmetry is measured by the financial analysts' earnings forecast variance. When we look at the results of previous studies, verify whether information asymmetry decreases as the response to the revenue cost increases and whether negative relationship between profit persistence and information asymmetry appears when the response to the revenue cost is high. As a result, firms with high revenue cost response showed a decrease in information asymmetry. The persistence of the earningss from the high earnings-cost response shows that the analysts' earnings forecast dispersion decreases. This means that the better the response to the revenue cost, the better the quality of the earnings and the less the information risk about the uncertainty of the enterprise. This study is different from the previous studies in that it analyzed whether the persistence of the earnings that responded to the high revenue cost reduces the information asymmetry. The results of this study suggest that managers can reduce the information asymmetry by carrying out appropriate revenue - cost responses, which provides important implications for stakeholders who use accounting earnings information.

• Journal of Korea Society of Digital Industry and Information Management
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• v.9 no.4
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• pp.267-279
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• 2013

To many, recent allegations of earnings management at Enron, coupled with similar ones at many other corporations, are a strong indication of a serious decay in business ethics. Nevertheless, the field of Corporate Social Responsibility(CSR) has grown exponentially in the last decade. This study investigates the effects of CSR on earnings management. Different to precedent works which focus on Financial Performance, this study attempts to provide empirical evidence for relevance of CSR and Discretionary Accruals(DA). The study used variables in the sustainability report, and DA for its earning management too progress empirical analysis because it is believed that the measurement of accounting transparency is highly related to the CEO's opportunistic selection of the accounting. In terms of Sustainable management activities, Employee training time(ETT) is significantly and negatively associated with Discretionary accruals(DA). And also Industrial Accidents Ratio(IAR) is significantly and negatively associated with Discretionary accruals. Consequently, empirical results suggest that Discretionary accruals associated with the company's CSR activities, such as ETT, and IAR. In this study, there are limitation of generalizations and omitted variable problem.