중국상장기업의 ESG 활동과 실제이익조정: 기업지배구조의 역할

This study analyzes the impact of ESG ratings on real earnings management by managers, focusing on companies listed on China's A-share market from 2013 to 2022. The research examines non-linear relationships between ESG ratings and real earnings management, as well as how these effects vary depending on institutional investor ownership and state ownership. When ESG ratings are below approximately 4.5, earnings management is decreased. However, for ratings above 4.5, earnings management tends to increase. Thus, we found an U-shaped non-linear relationship between ESG ratings and real earnings management. The higher institutional investor ownership is, the U-shaped relationship between ESG ratings and real earnings management is strengthened. For state-owned firms, the U-shaped relationships between ESG ratings and real earnings management are weakened. This research distinguishes itself from previous studies by identifying a non-linear, U-shaped relationship between ESG ratings and managerial earnings management. Our findings suggest that for Chinese listed companies, the effects of ESG ratings should be considered in the context of corporate governance factors such as state ownership and institutional investor ownership. Since managers’incentives for earnings management differ depending on the ESG rating, investors and stakeholders should carefully analyze the underlying intentions and actual practices of companies when evaluating ESG performance.