Does confucianism influence corporate earnings management?

Wei Yu, Keying Zhu, Huiqin Huang, Belaynesh Gebremariam

    Research output: Journal PublicationArticlepeer-review

    2 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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