[Home ] [Archive]   [ فارسی ]  
:: Main :: About :: Current Issue :: Archive :: Search :: Submit :: Contact ::
Main Menu
Home::
Journal Information::
About the Journal
Aims& Scopes
Editorial Board ::
Articles archive::
All Issues
Current Issue
Publication Ethics::
For Authors::
Guide for Authors
Submission Form
Peer Review Process::
Reviewers Section
Registration::
Registration Form
Site Facilities::
Site map
Search contents
FAQ
Top 10 contents
Inform to friends
Contact us::
Contact Information
Contact us
::
Search in website

Advanced Search
..
Receive site information
Enter your Email in the following box to receive the site news and information.
..
:: Volume 4, Issue 8 (2-2020) ::
aapc 2020, 4(8): 318-338 Back to browse issues page
Corporate Social Responsibility and Internal Control Weakness: The Empirical Testing of Stakeholder and signaling Theories
Reza Esmaeilpour1 , Yasser Rezaei Pitenoei 2, Mohammad Gholamrezapoor3
1- Associate professor of Management, University of Guilan, Rasht, Iran.(Esmaeilpour@guilan.ac.ir)
2- Assistant Professor of Accounting, University of Guilan, Rasht, Iran.(Corresponding Author) , rezaei.yasser@gmail.com
3- MA in Accounting.(Mohammad.gh5736@gmail.com)
Abstract:   (8225 Views)
responsibility tends to either culminate in the elimination of conflict of interests among stakeholders, thereby maximizing shareholders’ wealth or develop the procedures to manage management reputation in the marketplace at the expense of shareholders. The present study thus aims at investigating the association between the disclosure of corporate social responsibility and internal control weakness with respect to stakeholder and signaling theories in the Iranian listed firms. The research hypotheses are built upon a sample of 107 firms listed on the Tehran Stock Exchange during the years 2013-2017 and then tested using multivariate logistic regression model. The findings reveal that corporate social responsibility disclosure is significantly correlated with internal control weakness. This suggests that corporate social responsibility is concerned with eliminating the conflict of interests among stakeholders, thereby maximizing shareholders’ wealth and improving internal control efficacy.
Keywords: Social Responsibility, Internal Control Weakness, Stakeholder Theory, Signaling Theory.
Full-Text [PDF 201 kb]   (1282 Downloads)    
Type of Study: Research | Subject: Special
Received: 2019/02/4 | Accepted: 2019/04/21 | Published: 2020/02/8
References
1. Appuhami, R., and S. Tashakor. 2017. The Impact of Audit Committee Characteristics on CSR Disclosure: An Analysis of Australian Firms: An Analysis of Australian Firms, Australian Accounting Review 27(4): 400-420.
2. Ashbaugh-Skaife, H., D. W. Collins, and W. R. Kinney Jr. 2007. The discovery and reporting of internal control deficiencies prior to SOX-mandated audits, Journal of Accounting and Economics 44: 166–192.
3. Barnea, A., and A. Rubin. 2010. Corporate social responsibility as a conflict between shareholders, Journal of Business Ethics 97: 71–86.
4. Bryan, S., and S. Lilien. 2005. Characteristics of firms with material weaknesses in internal control: An assessment of Section 404 of Sarbanes-Oxley, Working paper, Wake Forest University and City University of New York.
5. Benlemlih, M. and M. Bitar. 2016. Corporate Social Responsibility and Investment Efficiency, J Bus Ethics, DOI: 10.1007/s10551-016-3020-2.
6. Call, A. C., Campbell, J. L., Dhaliwal, D., S., and H.M. Moon Jr. 2017. Employee quality and financial reporting outcomes. Journal of Accounting and Economics 64(1): 123-149.
7. Cheng, B., Ioannou, I., and G. Serafeim. 2014. Corporate social responsibility and access to finance, Strategic Management Journal 35(1): 1–23.
8. Cheng, Y. K. 2004. Corporate Governance and Earnings Management: The Implications of Corporate Governance Best-Practice Principles for Taiwanese Listed Companies, Journal of Contemporary Accounting & Economics 3(2): 73-105.
9. Cheng, B., Ioannou, I. and G. Serafeim. 2014. Corporate social responsibility and access to finance, Strategic Management Journal 35(1): 1–23.
10. Chen, Y., Eshleman, J. D. & Soileau, J. S. 2016. Board Gender Diversity and Internal Control Weaknesses, Advances in Accounting, incorporating Advances in International Accounting, 33: 11-19.
11. Cho, S. Y., Lee, C. and Pfeiffer, R. J. 2013. Corporate social responsibility performance and information asymmetry, Journal of Accounting and Public Policy, 32(1): 71–83.
12. Deng, X., J. Kang., and B. S. Low. 2013. Corporate social responsibility and stakeholder value maximization: Evidence from mergers. Journal of Financial Economics 110: 87–109.
13. Donaldson, T., and L. E. Preston. 1995. The stakeholder theory of the corporation: Concept, evidence, and implications, Academy of Management Review 20: 701–711.
14. Doyle, J. T., W. Ge, and S. McVay. 2007. Determinants of weaknesses in internal control over financial reporting, Journal of Accounting and Economics 44: 193–223.
15. El Ghoul, S., O. Guedhami, H. Wang, C. C. Y. Kwok. 2016. Family control and corporate social responsibility. Journal of Banking & Finance 73: 131-146.
16. Ge, W., and S. McVay. 2005. The disclosure of material weaknesses in internal control after the Sarbanes-Oxley Act, Accounting Horizons 19: 137–158.
17. Giannarakis, G. 2014. The determinants influencing the extent of CSR disclosure. International Journal of Law and Management 56 (5): 393-416.
18. Gras-Gil, E., M. P. Manzano, and J. H. Fernandez. 2016. Investigating the relationship between corporate social responsibility and earnings management: Evidence from Spain, Business Research Quarterly 51: 1–11.
19. Guo, J., Huang, P., Zhang, Y., and N. Zhou. 2016. The effect of employee treatment policies on internal control weaknesses and financial restatements. Accounting Review 91(4): 1167–1194.
20. Harjoto, M. A. 2018. Corporate Social Responsibility and Corporate Fraud. Social Responsibility Journal 13(4): 762-779.
21. Hoitash, U., R. Hoitash, and J. C. Bedard. 2009. Corporate governance and internal control over financial reporting: A comparison of regulatory regimes, The Accounting Review 84: 839–867.
22. Iatridis, G. E. 2013. Environmental Disclosure Quality: Evidence on Environmental Performance, Corporate Governance and Value Relevance, Emerging Markets Review, 14: 55-75.
23. Ioannou, I., G. Serafeim 2012. What drives corporate social performance? The role of nation-level institutions, Journal of International Business Studies 43 (9): 834-864.
24. Jensen, M. C. 2001. Value maximization, stakeholder theory, and the corporate objective function, Journal of Applied Corporate Finance 14: 8–21.
25. Jo, H., and M. Harjoto, 2011. Corporate governance and firm value: The impact of corporate social responsibility, Journal of Business Ethics 103: 351–383.
26. Kim, Y., M. S. Park, and B. Wier. 2012. Is earnings quality associated with corporate social responsibility? The Accounting Review 87: 761–796.
27. Kim, Y.S., Kim, Y., and H. Kim. 2017. Corporate social responsibility and Internal Control Effectiveness. Asia-Pacific Journal of Financial Studies 46: 341–372.
28. Liu, C., Lin, B., and W. Shu. 2017. Employee quality, monitoring environment and internal control. China Journal of Accounting Research 10(1): 51-70.
29. Li, C., J. Lim, and Q. Wang. 2007. Internal and external influences on IT control governance, International Journal of Accounting Information Systems 8: 225–239.
30. Mahoney, L. S. 2012. Standalone CSR reports: A Canadian analysis, Issues in Social & Environmental Accounting 6: 4–25.
31. Orlitzk, M., and J. D. Benjamin. 2001. Corporate social performance and firm risk: A metaanalytic review, Business and Society 40: 369–396.
32. Park, J., H. Lee, & C. Kim. 2014. Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers' perspectives. Journal of Business Research, 67(3): 295-302.
33. Peng, C. Y. J., K. L. Lee, and G.M. Ingersoll. 2002. An introduction to logistic regression analysis and reporting, The Journal of Educational Research 96(1): 3-14.
34. Rice, S. C., and D. P. Weber. 2012. How effective is internal control reporting under SOX 404? Determinants of the (non-)disclosure of existing material weaknesses, Journal of Accounting Research 50: 811–843.
35. Shea, L. J. 2010. Using consumer perceived ethicality as a guideline for corporate social responsibility strategy: A commentary essay, Journal of Business Research 63: 263–264.
36. Wu. C., and V. Liu. 2010. The Release Timing of Annual Reports and Board Characteristics, Accounting and Business Research 41(6): 39-96.
Add your comments about this article
Your username or Email:

CAPTCHA

XML   Persian Abstract   Print

Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Esmaeilpour R, Rezaei Pitenoei Y, Gholamrezapoor M. Corporate Social Responsibility and Internal Control Weakness: The Empirical Testing of Stakeholder and signaling Theories. aapc 2020; 4 (8) :318-338
URL: http://aapc.khu.ac.ir/article-1-596-en.html
Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Volume 4, Issue 8 (2-2020) Back to browse issues page
دوفصلنامه علمی حسابداری ارزشی و رفتاری journal of Value & Behavioral Accounting
Persian site map - English site map - Created in 0.09 seconds with 37 queries by YEKTAWEB 4666