The impact of climate risk on earnings management: International evidence
Abstrak
Abstract This study explores the influence of climate risk on properties of firms’ financial reporting practices with observations collected from 64 countries between 2005 and 2016. We use a country-level climate risk indicator developed by Germanwatch to measure the degree of damage from extreme weather events, and find that climate risk positively influences firms’ engagements in both accruals-based and real earnings management. Furthermore, we document that the above-mentioned effects of climate risk are moderated by the quality of country-level public governance. Subsample analysis suggests that the main effect of climate risk on earnings management is more pronounced for firms from developed countries, for firms in environment-sensitive industries, and for firms reporting losses. Our findings, which are supported by a battery of robustness tests, have important implication for regulators and policymakers.
Topik & Kata Kunci
Penulis (4)
R. Ding
Mingzhi Liu
Tingting Wang
Zhenyu Wu
Akses Cepat
PDF tidak tersedia langsung
Cek di sumber asli →- Tahun Terbit
- 2021
- Bahasa
- en
- Total Sitasi
- 144×
- Sumber Database
- Semantic Scholar
- DOI
- 10.1016/J.JACCPUBPOL.2021.106818
- Akses
- Open Access ✓