ارتباط تعداد و کیفیت افشاء پایداری با کیفیت سود و درآمد دیجیتالی Are the Quantity and Quality of Sustainability Disclosures Associated with the Innate and Discretionary Earnings Quality?

Introduction In the aftermath of financial scandals (e.g., Enron, WorldCom) at the turn of the twenty-first century and the 2007–2009 global financial crisis, public companies have become more sensitive toward disclosing their ethical value, long-term sustainability performance, and reputation (Rezaee 2016). Cohen et al. (2011, 2012) argue that investors are more interested in non-financial disclosures than the disclosure of traditional financial economic indicators. The 2016 report of the Investor Responsibility Research Center Institute (IRRCi) indicates that investors and portfolio managers are integrating environmental social and governance (ESG) information into their investment decisions (IRRCi 2016). Several recent studies address the importance of ESG sustainability performance reporting to business organizations, its relevance as it pertains to corporate culture and reputation, and raised concerns about the greenwashing aspect of sustainability reporting. For example, Rezaee (2017: 63) suggests ‘‘…organizations to take their sustainability initiatives from the current greenwashing and publicity stage to the top of the agenda for their directors and executives to integrate into their corporate culture, infrastructure, and business models.’’ Unerman and Chapman (2014; 392) state that ‘‘Accounting for sustainability development represents a complex and pressingly important area of research’’. Haffar and Searcy (2017: 514) advocate ‘‘Qualitative research into the application of CS [corporate sustainability] initiatives in specific application areas (such as reporting or supply chain management)…’’ This paper responds to these calls by examining the association between the quantity and quality of ESG sustainability disclosures and earnings quality.1 Prior research views corporate social responsibility (CSR) in ESG sustainability dimensions as a proxy for improved ethical behavior. For example, Watts and Holme (1999) define CSR as ‘‘the continuing commitment by business to behave ethically….’’ Carroll (1979) views CSR in the context of economic, legal, ethical, and discretionary expectations and performance. The link between ESG business sustainability and corporate reputation and ethics of management is also examined in several studies. Ameer and Othman (2012) find that firms with sustainability-focused in areas of CSR, ethical practices and ethical work environment, and customer satisfaction experience higher financial performance compared with less sustainabilityfocused firms. Martinez-Ferrero et al. (2016) report that CSR is positively associated with corporate reputation and lower cost of capital particularly for firms with evidence of earnings management. A 2013 global consumer survey suggests that the firm’s ESG sustainability performance can affect both consumer behavior and corporate reputation and ethical practices, which may result in improved financial performance (Cone Communications 2013).