Does confucianism influence corporate earnings management?

Wei Yu, Keying Zhu, Huiqin Huang, Belaynesh Teklay

Research output: Journal PublicationArticlepeer-review

4 Citations (Scopus)

Abstract

This paper investigates the effect of Confucianism on corporate earnings management. Using a sample of Chinese listed firms from 2007 to 2017, we find that corporate earnings management is negatively associated with the popularity of Confucianism. Our findings also reveal that the effect of Confucianism is particularly strong among firms characterized with weaker internal control and external supervision or located in areas with lower level of marketization. Our findings shed important light on how culture improves the quality of financial reporting in emerging markets.

Original languageEnglish
Article number101390
JournalResearch in International Business and Finance
Volume56
DOIs
Publication statusPublished - Apr 2021

Keywords

  • Confucianism
  • Corporate governance
  • Earnings management

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

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