Social Responsibility, Financial Distress and Real Earnings Management

Subject Areas :

Ghasem Ghasemi ^{1 *} , Sara eshaghiyan ²

1 -
2 - Auditing master's student, Department of Accounting, Sabzevar Branch, Islamic Azad University, Sabzevar, Iran.

Received: 2024-12-23 Accepted : 2025-01-21 Published : 2025-09-04

Keywords: Real social responsibility, Earnings management, Financial crisis ,

Abstract :

The main purpose of this research is to determine the impact of social responsibility and Earnings management with the moderating role of financial­ crisis in Tehran Stock Exchange companies. In the behavioral perspective of profit, it is believed that profit is the criterion for many decisions, and based on this, managers will also manage profit.  On the other hand, social responsibility is an ethical framework for any person or organization to act sensitively on social, cultural, economic and environmental issues. Trying to fulfill social responsibility helps individuals, organizations and governments to have a positive role and impact in the sustainable development of a society. This research was conducted for a period of 5 years from 2017 to 2022.The data, after checking the availability of their data, were collected and classified with the help of Excel software and analyzed with the help of Eviews software.  The results showed that there is a negative relationship between social responsibility and Earnings management, and this relationship is significant.  Based on the ethical theory and signaling theory, corporate social responsibility can be used as a tool to reduce Earnings management. Also, financial crisis moderate the relationship between social responsibility and profit management, and the relationship is negative and significant.

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