IJIMT 2016 Vol.7(6): 272-279 ISSN: 2010-0248
doi: 10.18178/ijimt.2016.7.6.686

Discretionary Accruals and Corporate Social Responsibility with Supply Chain CPAs and Industry Lifecycle: Evidence from the Taiwan Electronics Industry

Li-Lun Liu and Yu-Ting Huang
Abstract—This study evaluates the corporate social responsibility (CSR) performance of listed companies in Taiwan by examining how companies meet their CSR obligations and how employing supply chain certified public accountants (CSRSCPA) affects the quality of companies’ earnings. This study also examines CSRSCPA at various stages of a company’s lifecycle to identify the nature of CSRSCPA performance and provides insight into their causes and consequences. However, CSRSCPA face the challenge of potential information collusion. Hence, this study examines supply chain CPAs in the context of a company’s CSR performance to determine the impact on a company’s financial statements. The results revealed that CSRSCPA have a negative effect on discretionary accruals. In addition, both positive earnings quality and a positive public response occur when the Big 4 audit firms audit CSR companies. Furthermore, maturity companies are more likely than growing companies to receive favorable reactions from market participants when CSRSCPA are upstream.


Index Terms—Discretionary accruals, corporate social responsibility, supply chain CPA, lifecycle.

Li-Lun Liu is with the Department of Business Administration and Department of Accounting College of Business, Chung Yuan Christian University, Chung-Li City, Taiwan (e-mail: alexliu@cycu.edu.tw).

Yu-Ting Huang is with the Chung Yuan Christian University, Chung Li, Taiwan (e-mail: g10104602@cycu.edu.tw).

[PDF]

Cite: Li-Lun Liu and Yu-Ting Huang, " Discretionary Accruals and Corporate Social Responsibility with Supply Chain CPAs and Industry Lifecycle: Evidence from the Taiwan Electronics Industry," International Journal of Innovation, Management and Technology vol. 7, no. 6, pp. 272-279, 2016.

Copyright © 2008-2015. International Journal of Innovation, Management and Technology. All rights reserved.
E-mail: ijimt@ejournal.net