International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Identifying effective factors in the relationship between a socially responsible board of directors and earnings management

Document Type : Original Article

Authors
Majid Ali Beigloo 1
Sahar Sepasi 2
Javad Reza Zadeh 2
1 PhD Candidate in Accounting, Faculty of Management of Economics, Tarbiat Modares University, Tehran, Iran
2 Associate Professor, Accounting Department, Faculty of Management of Economics, Tarbiat Modares University, Tehran, Iran
10.22034/ijfma.2025.78367.2244
Abstract
The role of the board of directors as the main decision-maker in relation to corporate social responsibility and corporate earnings management is very important in the era of corporate governance. In this study, the factors affecting the modeling of the board of directors supporting social responsibility and its impact on earnings management with respect to corporate governance have been identified. This research is of a descriptive-correlation type that initially began with a qualitative method. In the qualitative part, data were collected through semi-structured interviews with 19 experts and specialists related to the subject. The sampling method in this part was non-random, purposeful/snowball. Information related to the influencing factors was extracted from the Kodal site and the Delphi method was used to analyze the data. The results of the study show that various factors such as social responsibility performance, information disclosure, social responsibility strategies, corporate characteristics, and corporate governance structure affect the modeling of the board of directors supporting social responsibility on earnings management. Socially responsible performance in environmental and social dimensions, transparent information disclosure, and social responsibility strategies increase stakeholder trust and reduce non-transparent behaviors such as earnings management. Also, corporate characteristics such as company size and cash flow, along with an appropriate corporate governance structure, enhance financial transparency and greater oversight of board decisions and reduce earnings management behaviors. These factors generally help improve the financial and social sustainability of companies.
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