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Research Seminar

The influence of ownership structure on the link between corporate social responsibility and earnings management
Public Policy, Enterprise, Governance and Sustainability (PPEGS)
The Public Policy, Enterprise, Governance and Sustainability (PPEGS) Research Theme
Invite you to a seminar by Abobaker Mohmed, University of Limerick

Titled: The influence of ownership structure on the link between corporate social responsibility and earnings management
 
Date: Tuesday, 20th February 1pm to 2pm
Venue: Kemmy Business School, KB1-15
 
All are welcome to attend with tea and coffee provided before the seminar begins.

Biography
Abobaker Mohmed is a PhD Candidate (Accounting and Finance) of the Kemmy Business School, Graduate Research Centre, University of Limerick. Abobaker is originally from Libya. He is carrying out research on the link between corporate social responsibility (CSR) and earnings management (EM) and the impact of corporate governance on this link in an emerging economy market, specifically within the Egyptian context.  

Abstract
This paper investigates the relationship between corporate social responsibility (CSR) and earnings management (EM). In addition, the impact of corporate governance (CG) mechanisms on this link within the Egyptian context is considered. We argue that the existence of managerial ownership and the percentage of shares held by family members should manifest a different CSR/EM dynamic. We find that CSR ratings are positively associated with EM when the whole sample is considered. This implies that firms may engage in CSR issues to conceal their poor performance. However, the study uncovered that EM practices appear to be negatively linked to CSR in firms with a high percentage of family ownership and in firms where managers are also shareholders. Further, managerial ownership appears to have a negative impact on CSR while a positive influence on CSR found by family ownership.
This paper provides additional evidence based on the agency perspective that managerial and family ownership, as types of internal shareholders, may mitigate agency costs. Managers when they are also shareholders are more vigilant and cautious when monitoring their businesses. The paper also provides a further explanation on the mixed results reached on the link between CSR and EM found in previous research. Ownership structure can assist in explaining how CSR ratings are linked to EM in a firm. Finally, the issue of endogeneity where the influence on CSR may be determined by other factors than EM is taken into consideration when examining the link between CSR and EM.

The Public Policy, Enterprise, Governance and Sustainability Seminar Series is organised by:
Prof. Helena Lenihan (Department of Economics) helena.lenihan@ul.ie
Kathleen Regan (Department of Accounting and Finance) kathleen.regan@ul.ie
 
Co-Theme Leaders:
Prof. Helena Lenihan (Department of Economics)
Dr. Philip O’ Regan (Dean, Kemmy Business School)
 
For further information on webpage:
http://www.ul.ie/business/public-policy-enterprise-governance-and-sustainability-ppegs