Earning Management and Social Responsibility of the Citizen Firm

Abstract

This research aims to verify whether the social status exacerbates opportunistic strategies through the financial and the internal environment of the citizens firms, notably, earning management and the instrumentalization of the interests of the stakeholders. Our results reveal income-increasing management, especially in technology firms. The practices of the corporate citizens do not necessarily reveal their good intentions. By appropriating corporate status, consider it as an instrument of their legitimacy to conceal discretionary strategies. Social status can not be constraints to these manipulations. The precipitation of these companies to the social classification dominates really social objectives.

Keywords: earning management, financial performance, social performance, opportunistic managers, social status, stakeholders

JEL Classification: C21, C23, G29