ESG, ESG rating divergence and earnings management: Evidence from China

• Published in: Corporate social-responsibility and environmental management Vol. 31; no. 4; pp. 3328 - 3347
• Main Authors: Mao, Zhihong, Wang, Siyang, Lin, Yu‐En
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Inc 01.07.2024; Wiley Periodicals Inc
• Subjects: Divergence; Earnings management; earnings quality; Environmental performance; ESG; ESG rating divergence; Greenwashing; Social responsibility; China

The existing studies on the relationship between ESG and earnings management provide mixed evidence and ignore ESG rating divergence. Using a sample of Chinese listed firms from 2009 to 2021, we examine the effect of ESG performance on earnings management under different levels of ESG rating diverge...