Work

An Investigation into the Impact of Managerial Overconfidence, Real Earnings Management, and Enterprise Risk Management on Corporate Social Responsibility

Year: 2025

Type: article

Abstract: Corporate social responsibility (CSR) has emerged as a new and sensitive topic in the theoretical literature of accounting research. It is considered a fundamental factor for the survival of companies and has attracted attention from various perspectives of investors, managers, and researchers. Researchers have identified numerous variables as influential factors in CSR. However, this study specifically focuses on examining factors such as Enterprise Risk Management (ERM), Real earnings management (REM), and CEO overconfidence in relation to CSR. This research used data related to 121 companies listed on the Tehran Stock Exchange (TSE) from 2010 to 2022. The results of the hypotheses in this study indicate that when a company lacks an appropriate risk management mechanism (with more unconventional risk management), the level of CSR is lower. Alternatively, managers with higher overconfidence are motivated and inclined to manipulate real earnings. They may endeavor to justify their misuse of company financial resources under the pretext of fulfilling CSR.

Source: International Journal of Economics and Financial Issues

DOI: 10.32479/ijefi.19883

Authors: Rezvan Pourmansouri, Dariush Damoori, Mir Feiz Fallah, Fatemeh Dekamini, Ramona Birau

Institutions: Islamic Azad University, Tehran, Islamic Azad University, Science and Research Branch, Yazd University, Islamic Azad University Central Tehran Branch, University of Tehran, Constantin Brâncuși University of Targu Jiu, University of Craiova

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $300

OpenAlex ID: W4413519225

FWCI: 0.916

Cites:

Cited by: 1

Related to: 10