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B Corporation Certification: A Further Exploration into the Impact of Corporate Social Responsibility on Earnings Management

Lauren A. Cooper et al.

Accounting and the Public Interest2026https://doi.org/10.2308/api-2024-008article
AJG 2ABDC B
Weight
0.50

Abstract

We investigate the relation between corporate social responsibility (CSR) and earnings management within the novel setting of certified B Corporations. We survey professionals from B Corporations and non-B Corporations to assess their likelihood of engaging in different types of earnings management: accrual earnings management, real earnings management with heightened CSR concerns, and real earnings management without heightened CSR concerns. We find that B Corporation managers are less likely to engage in the types of earnings management viewed as more unethical (accrual earnings management and real earnings management with heightened CSR concerns), and these relations are mediated by the decreased importance B Corporation managers place on meeting earnings expectations. Our findings inform the earnings management literature by providing new insights into the impact of CSR on managers’ earnings management decisions as well as the importance of considering the potential CSR consequences of specific earnings management activities. Data Availability: The data that support the findings of this study are available from the first author upon request. JEL Classifications: G3; M4.

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https://doi.org/https://doi.org/10.2308/api-2024-008

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@article{lauren2026,
  title        = {{B Corporation Certification: A Further Exploration into the Impact of Corporate Social Responsibility on Earnings Management}},
  author       = {Lauren A. Cooper et al.},
  journal      = {Accounting and the Public Interest},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.2308/api-2024-008},
}

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B Corporation Certification: A Further Exploration into the Impact of Corporate Social Responsibility on Earnings Management

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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