We investigate the relation between corporate social responsibility (CSR) and earnings management within the novel setting of certified B Corporations. We survey professionals from B Corporations and non-B Corporations to assess their likelihood of engaging in different types of earnings management: accrual earnings management, real earnings management with heightened CSR concerns, and real earnings management without heightened CSR concerns. We find that B Corporation managers are less likely to engage in the types of earnings management viewed as more unethical (accrual earnings management and real earnings management with heightened CSR concerns), and these relations are mediated by the decreased importance B Corporation managers place on meeting earnings expectations. Our findings inform the earnings management literature by providing new insights into the impact of CSR on managers’ earnings management decisions as well as the importance of considering the potential CSR consequences of specific earnings management activities. Data Availability: The data that support the findings of this study are available from the first author upon request. JEL Classifications: G3; M4.
This paper attempts to fill a gap in the accounting literature by exploring the impact of a teaching module involving microaggressions (microassaults, microinsults, and microinvalidations) and microexclusions. Our research shows that accounting students have experienced a wide range of microaggressions and microexclusions inside and outside of the classroom. This paper supports the need for increased training for both faculty and students within accounting curricula on Diversity, Equity, Inclusion, and Belonging (DEIB) topics. Accounting educators can seek self-development improvement, which may lead to a more welcoming classroom experience for all. Although actively integrating DEIB may not be possible for some professors or institutions because of state law, we encourage faculty to continue to pursue an understanding of teaching techniques and cases that promote DEIB awareness to support the academy and improve student knowledge acquisition by eliminating microaggressions and microexclusions perpetuated by faculty. Data Availability: Data are available upon request.
This paper explores how two public accounting associations, the American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA), conveyed norms of conduct to members and students through editorials published in the Journal of Accountancy and CA Magazine from 1916 to 1973, with a focus on the use of profession-related terms. Drawing on Bakhtin’s concept of stylistic aura and employing advanced textual analysis techniques, the study reveals that profession stem words played a key role in communicating these norms by synthesizing varied normative concerns into a cohesive professional discourse applicable across settings. The semantic meanings of these sentences shifted over time and between journals. Additionally, the study finds that utterances with profession stem words were more pervasive and better at highlighting competing concerns than ethics stem words. This study contributes to our understanding of accounting association communication processes, specifically communication via professional narratives.
Corporate lobbying is a legitimate mechanism for businesses to participate in the regulatory decision-making processes. However, a long-standing concern exists about whether lobbying compromises the quality of regulatory standards by prioritizing special interests over the public good. Research has highlighted instances where corporate lobbyists have significantly influenced both U.S. and international regulations. Researchers also analyzed lobbying firms’ characteristics and how corporate lobbying impacts the outcomes of firms’ activities. This study synthesizes the contemporary lobbying research published in mainstream accounting journals and offers a conceptual framework to examine its role in accounting standard setting and other regulatory processes. The study also explores the factors determining corporate lobbying behavior and the consequences of lobbying on various corporate outcomes. Through analyzing theoretical, survey, and archival studies in accounting literature, the study also offers directions for future research. JEL Classifications: M10; M41; M48.
The name-letter effect is the tendency for individuals to evaluate the alphabetical initials in their name particularly favorably due to egocentric bias. We investigate whether the name-letter effect influences judicial decision-making in a tax setting. We construct datasets from decades of tax court data for two types of taxpayers (individuals and corporations) in two jurisdictions (Canada and the United States). Our total sample size is 11,370 cases. Using all possible combinations of first letter matches between taxpayers’ and judges’ names, we do not find that the likelihood of a taxpayer achieving a favorable outcome is significantly higher than if there is no name-letter match. We also match first and last names of taxpayers with judges and do not find any significant differences in outcome likelihood. Our results suggest that a psycho-linguistic phenomenon with considerable empirical support in extralegal contexts is unlikely to unconsciously bias judges. Data Availability: Data are available through the Open Science Framework at https://osf.io/3v47u/?view_only=9edcb8afa6d74783bea626126ce98bb2
