Environmental, social, and governance scores and earnings management in telecommunication companies: An international perspective

Abstract This study investigates the relationship between environmental, social, and governance (ESG) scores potential tendencies to manipulate earnings of telecommunication companies. We assumed a negative ESG management since companies with higher are more responsible expected prevent manipulation. used from Refinitiv as sustainability measures discretionary accruals indicator management. constructed models assuming bilateral earnings. The results reveal that environmental have dispersion normal accruals; this may result for two reasons in our anticipation: they record depending on regulations use make up their Social impact accruals, which insignificant. Hence social responsiveness strong produce reliable financial information.