Accounting fraud and corporate sustainability: Chinese listed companies

Abstract

Purpose The purpose of this study is to determine the relationship between accounting fraud and corporate sustainability. Design/methodology/approach Companies listed on the Shenzhen Stock Exchange in 2019 are used to estimate a pooled ordinary least square regression model using panel data. Accounting fraud is represented by accounting disclosure, which is measured by its quality and timeliness, while corporate sustainability is measured by earnings management and corporate social responsibility. Findings Empirical findings support the hypothesis that the quality and timeliness of accounting disclosure have a statistically favorable impact on the management of company earnings and corporate social responsibility, respectively. Accounting fraud also has an impact on the sustainable development of the company. Originality/value Although the inferences of this study are limited to Chinese listed companies, this study may interest other scholars to explore similar topics.