Financial Reporting Quality and Sustainability Information Disclosure in Brazil

Currently, businesses face an information disclosure approach involving the triple bottom line (social, environmental, and financial). This paper aims to investigate the relationship between corporate social responsibility (CSR) information and financial reporting quality (FRQ). We argue that CSR co...

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Autores principales:	João Antônio Salvador de Souza, Leonardo Flach, José Alonso Borba, Cleber Broietti
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2019
Materias:	corporate social responsibility financial reporting quality earnings management Business HF5001-6182
Acceso en línea:	https://doaj.org/article/6bd7409795e744a2a00bf162ff7f18d3
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spelling	oai:doaj.org-article:6bd7409795e744a2a00bf162ff7f18d32021-11-11T15:48:08ZFinancial Reporting Quality and Sustainability Information Disclosure in Brazil1807-734X10.15728/bbr.2019.16.6.2https://doaj.org/article/6bd7409795e744a2a00bf162ff7f18d32019-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123062339002https://doaj.org/toc/1807-734XCurrently, businesses face an information disclosure approach involving the triple bottom line (social, environmental, and financial). This paper aims to investigate the relationship between corporate social responsibility (CSR) information and financial reporting quality (FRQ). We argue that CSR companies behave differently in preparing financial accounting reports. Recent literature supports this theme, providing two distinct hypotheses: transparent financial reporting and retreatment. We used a sample of 1,181 companies from the years 2012 to 2016 to identify if socially responsible companies have better quality financial accounting information. In contrast to the hypotheses raised, we didn’t find a relationship between the CSR disclosures and the FRQ proxies. This suggests that sustainable companies do not explain lower or higher levels of earnings management. Our findings remain unchanged when we replace results management through discretionary accruals for manipulations of operating activities. Estimates with comparable samples also didn’t change the interpretations of the results.João Antônio Salvador de SouzaLeonardo FlachJosé Alonso BorbaCleber BroiettiFUCAPE Business Schoolarticlecorporate social responsibilityfinancial reporting qualityearnings managementBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 16, Iss 6, Pp 555-575 (2019)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	corporate social responsibility financial reporting quality earnings management Business HF5001-6182
spellingShingle	corporate social responsibility financial reporting quality earnings management Business HF5001-6182 João Antônio Salvador de Souza Leonardo Flach José Alonso Borba Cleber Broietti Financial Reporting Quality and Sustainability Information Disclosure in Brazil
description	Currently, businesses face an information disclosure approach involving the triple bottom line (social, environmental, and financial). This paper aims to investigate the relationship between corporate social responsibility (CSR) information and financial reporting quality (FRQ). We argue that CSR companies behave differently in preparing financial accounting reports. Recent literature supports this theme, providing two distinct hypotheses: transparent financial reporting and retreatment. We used a sample of 1,181 companies from the years 2012 to 2016 to identify if socially responsible companies have better quality financial accounting information. In contrast to the hypotheses raised, we didn’t find a relationship between the CSR disclosures and the FRQ proxies. This suggests that sustainable companies do not explain lower or higher levels of earnings management. Our findings remain unchanged when we replace results management through discretionary accruals for manipulations of operating activities. Estimates with comparable samples also didn’t change the interpretations of the results.
format	article
author	João Antônio Salvador de Souza Leonardo Flach José Alonso Borba Cleber Broietti
author_facet	João Antônio Salvador de Souza Leonardo Flach José Alonso Borba Cleber Broietti
author_sort	João Antônio Salvador de Souza
title	Financial Reporting Quality and Sustainability Information Disclosure in Brazil
title_short	Financial Reporting Quality and Sustainability Information Disclosure in Brazil
title_full	Financial Reporting Quality and Sustainability Information Disclosure in Brazil
title_fullStr	Financial Reporting Quality and Sustainability Information Disclosure in Brazil
title_full_unstemmed	Financial Reporting Quality and Sustainability Information Disclosure in Brazil
title_sort	financial reporting quality and sustainability information disclosure in brazil
publisher	FUCAPE Business School
publishDate	2019
url	https://doaj.org/article/6bd7409795e744a2a00bf162ff7f18d3
work_keys_str_mv	AT joaoantoniosalvadordesouza financialreportingqualityandsustainabilityinformationdisclosureinbrazil AT leonardoflach financialreportingqualityandsustainabilityinformationdisclosureinbrazil AT josealonsoborba financialreportingqualityandsustainabilityinformationdisclosureinbrazil AT cleberbroietti financialreportingqualityandsustainabilityinformationdisclosureinbrazil
_version_	1718433894028541952

Financial Reporting Quality and Sustainability Information Disclosure in Brazil

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