Corporate Citizenship and Earnings Attributes

Advances in Accounting, Incorporating Advances in International Accounting, Vol. 25, pp. 40-48, 2009

Posted: 25 Jul 2011

See all articles by Indrarini Laksmana

Indrarini Laksmana

Kent State University - Department of Accounting

Ya-Wen Yang

Wake Forest University - Schools of Business

Date Written: December 8, 2008

Abstract

This study examines the association between corporate citizenship and earnings attributes. We examine four accounting-based earnings attributes, including persistence, predictability, smoothness, and accrual quality. Our sample consists of 652 public companies used to select the 100 Best Corporate Citizens (BCC) published by Business Ethics Magazine in 2001 and 2002. We find that BCC’s earnings are more predictable, more persistent, and smoother than non-BCC’s. Consistent with prior research findings, our results also indicate that BCC report higher subsequent accounting returns than non-BCC in the three-year period following the publication of the 2001 and 2002 BCC lists. We attribute these findings to the effort of good corporate citizens to preserve their reputation and the public’s trust.

Keywords: corporate social responsibility, earnings persistence, earnings predictability, earnings smoothness, accrual quality

Suggested Citation

Laksmana, Indrarini and Yang, Ya-Wen, Corporate Citizenship and Earnings Attributes (December 8, 2008). Advances in Accounting, Incorporating Advances in International Accounting, Vol. 25, pp. 40-48, 2009 . Available at SSRN: https://ssrn.com/abstract=1895044

Indrarini Laksmana (Contact Author)

Kent State University - Department of Accounting ( email )

P.O. Box 5190
Kent, OH 44242-0001
United States

Ya-Wen Yang

Wake Forest University - Schools of Business ( email )

P.O. Box 7659
Winston-Salem, NC 27109-7285
United States
336-758-2934 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
1,295
PlumX Metrics